Required information (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 Variable expenses Contribution margin Fixed expenses Net operating income $ 50,000 27.500 22,500 14,850 2. What is the contribution margin ratio? % Contribution margin ratio Required information [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 Variable expenses Contribution margin Fixed expenses Net operating income $ 50,000 22,500 22,500 14,850 $ 7.650 3. What is the variable expense ratio? Variable expense ratio % ! Required information [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 Variable expenses Contribution margin Pixed expenses Net operating income $ 50,000 27.500 22,500 14,850 $ 7,650 4. If sales increase to 1,001 units, what would be the increase in net operating income? (Round your answer to 2 decimal places.) Increase in net operating income Required information [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 Variable expenses Contribution margin Fixed expenses Net operating income $ 50,000 27,500 22,500 14,850 $ 7,650 5. If sales decline to 900 units, what would be the net operating income? Net operating income Required information [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 Variable expenses Contribution margin Tixed expenses Net operating income 550,000 27,500 22.500 14.850 $ 7,650 1 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? Net operating income ! Required information [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 Variable expenses Contribution margin Pixed expenses Net operating income $ 50,000 27,500 22,500 14,850 $ 7,650 7. If the variable cost per unit increases by $1, spending on advertising increases by $1,400, and unit sales increase by 180 units, what would be the net operating income? Net operating income Required information [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 Variable expenses Contribution margin Fixed expenses Net operating income $ 50,000 27,500 22,500 14,850 $ 7,650 8. What is the break-even point in unit sales? Break-even point units Required information [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 Variable expenses Contribution margin Fixed expenses Net operating income 5 50.000 27.500 22,500 14,850 9. What is the break-even point in dollar sales? Break-even point 0 Required information (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 Variable expenses Contribution margin Fixed expenses Net operating income $ 50,000 27,500 22,500 14,850 $ 7,650 10. How many units must be sold to achieve a target profit of $13,500? Number of units Required information (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 Variable expenses Contribution margin Fixed expenses Net operating income $ 50,000 27,500 22,500 14.850 $ 7,650 11. What is the margin of safety in dollars? What is the margin of safety percentage? Margin of safety in dollars Margin of safety percentage % Required information (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 Variable expenses Contribution margin Tixed expenses het operating income 5 50,000 27,500 22,500 14.850 57.650 12. What is the degree of operating leverage? (Round your answer to 2 decimal places.) Degree of operating leverage 5 Required information [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 Variable expenses Contribution margin Tixed expenses Net operating income $50,000 27.500 22,500 14,850 $ 7,650 13. Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 5% increase in sales? (Round your intermediate calculations and final answer to 2 decimal places.) % Increase in net operating income O Required information [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 Variable expenses Contribution margin Pixed expenses Net operating income $ 50,000 27,500 22,500 14,850 $ 7,650 14. Assume that the amounts of the company's total variable expenses and total fixed expenses were reversed. In other words, assume that the total variable expenses are $14,850 and the total fixed expenses are $27,500. Under this scenario and assuming that total sales remain the same, what is the degree of operating leverage? (Round your answer to 2 decimal places.) Degree of operating leverage Required information [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 Variable expenses Contribution margin Fixed expenses Set operating income $ 50,000 27.500 22,500 14.50 $ 7,650 15. Assume that the amounts of the company's total variable expenses and total foed expenses were reversed. In other we assume that the total variable expenses are $14,850 and the total foed expenses are $27.500. Given this scenario and assuming that total sales remain the same. Using the degree of calculated operating leverage, what is the estimated percent increase in net operating income of a 5% increase in sales? (Round your intermediate calculations and final answer to 2 decimal places.) Increase in net operating income Required information (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 Variable expenses Contribution margin Tixed expenses Net operating income $ 50.000 27.500 22,500 14,850 $ 7.650 2. What is the contribution margin ratio? Contribution margin ratio