Questions $4-15$

Oslo Company prepared the following contribution format income statement based on a sales volume of $1,000$ units $($the relevant range of production is $500$ units to $1,500$ units$)$:

Sales $ $100,000$

Variable expenses $65,000$

Contribution margin $35,000$

Fixed expenses $30,100$

Net operating income $ $4,900$

$4.$ If sales increase to $1,001$ units, what would be the increase in net operating income?

Note: Round your answer to $2$ decimal places.

Oslo Company prepared the following contribution format income statement based on a sales volume of $1,000$ units $($the relevant range of production is $500$ units to $1,500$ units$)$:

Sales $ $100,000$

Variable expenses $65,000$

Contribution margin $35,000$

Fixed expenses $30,100$

Net operating income $ $4,900$

$5.$ If sales decline to $900$ units, what would be the net operating income?

Note: Round "Per Unit" calculations to $2$ decimal places.

Oslo Company prepared the following contribution format income statement based on a sales volume of $1,000$ units $($the relevant range of production is $500$ units to $1,500$ units$)$:

Sales $ $100,000$

Variable expenses $65,000$

Contribution margin $35,000$

Fixed expenses $30,100$

Net operating income $ $4,900$

$6.$ If the selling price increases by $$2$ per unit and the sales volume decreases by $100$ units, what would be the net operating income?

Note: Round "Per Unit" calculations to $2$ decimal places.

Oslo Company prepared the following contribution format income statement based on a sales volume of $1,000$ units $($the relevant range of production is $500$ units to $1,500$ units$)$:

Sales $ $100,000$

Variable expenses $65,000$

Contribution margin $35,000$

Fixed expenses $30,100$

Net operating income $ $4,900$

$7.$ If the variable cost per unit increases by $$1,$ spending on advertising increases by $$1,900,$ and unit sales increase by $280$ units, what would be the net operating income?

Note: Round "Per Unit" calculations to $2$ decimal places.

Oslo Company prepared the following contribution format income statement based on a sales volume of $1,000$ units $($the relevant range of production is $500$ units to $1,500$ units$)$:

Sales $ $100,000$

Variable expenses $65,000$

Contribution margin $35,000$

Fixed expenses $30,100$

Net operating income $ $4,900$

$8.$ What is the break$-$even point in unit sales?

Note: Round intermediate calculations to $2$ decimal places.

Oslo Company prepared the following contribution format income statement based on a sales volume of $1,000$ units $($the relevant range of production is $500$ units to $1,500$ units$)$:

Sales $ $100,000$

Variable expenses $65,000$

Contribution margin $35,000$

Fixed expenses $30,100$

Net operating income $ $4,900$

$9.$ What is the break$-$even point in dollar sales?

Oslo Company prepared the following contribution format income statement based on a sales volume of $1,000$ units $($the relevant range of production is $500$ units to $1,500$ units$)$:

Sales $ $100,000$

Variable expenses $65,000$

Contribution margin $35,000$

Fixed expenses $30,100$

Net operating income $ $4,900$

$10.$ How many units must be sold to achieve a target profit of $$21,000?$

Note: Round intermediate calculations to $2$ decimal places.

Oslo Company prepared the following contribution format income statement based on a sales volume of $1,000$ units $($the relevant range of production is $500$ units to $1,500$ units$)$:

Sales $ $100,000$

Variable expenses $65,000$

Contribution margin $35,000$

Fixed expenses $30,100$

Net operating income $ $4,900$

$11.$ What is the margin of safety in dollars? What is the margin of safety percentage?

Oslo Company prepared the following contribution format income statement based on a sales volume of $1,000$ units $($the relevant range of production is $500$ units to $1,500$ units$)$:

Sales $ $100,000$

Variable expenses $65,000$

Contribution margin $35,000$

Fixed expenses $30,100$

Net operating income $ $4,900$

$12.$ What is the degree of operating leverage?

Note: Round your answer to $2$ decimal places.

Oslo Company prepared the following contribution format income statement based on a sales volume of $1,000$ units $($the relevant range of production is $500$ units to $1,500$ units$)$:

Sales $ $100,000$

Variable expenses $65,000$

Contribution margin $35,000$

Fixed expenses $30,100$

Net operating income $ $4,900$

$13.$ Using the degree of operating leverage, what is the estimated percent increase in net operating income that would result from a $5\%$ increase in unit sales?

Note: Round your intermediate calculations and final answer to $2$ decimal places.

Oslo Company prepared the following contribution format income statement based on a sales volume of $1,000$ units $($the relevant range of production is $500$ units to $1,500$ units$)$:

Sales $ $100,000$

Variable expenses $65,000$

Contribution margin $35,000$

Fixed expenses $30,100$

Net operating income $ $4,900$

$14.$ Assume the amounts of the company$$s total variable expenses and total fixed expenses were reversed. In other words, assume the total variable expenses are $$30,100$ and the total fixed expenses are $$65,000.$ Under this scenario and assuming total sales remain the same, what is the degree of operating leverage?

Note: Round your answer to two decimal places.