Question
Required information Skip to question [The following information applies to the questions displayed below.] Oslo Company prepared the following contribution format income statement based on
Required information
Skip to question
[The following information applies to the questions displayed below.]
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 | $ | 95,000 |
Variable expenses | 57,000 | |
Contribution margin | 38,000 | |
Fixed expenses | 31,920 | |
Net operating income | $ | 6,080 |
1. If sales decline to 900 units, what would be the net operating income?
2. If the variable cost per unit increases by $1, spending on advertising increases by $1,850, and unit sales increase by 270 units, what would be the net operating income?
3.What is the break-even point in unit sales?
4.What is the break-even point in dollar sales?
5.How many units must be sold to achieve a target profit of $22,800?
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