Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
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 $ 80,000 52,000 28,800 21,840 $ 6,160 Required: 1. What is the contribution margin per unit? (Round your answer to 2 decimal places.) Contribution margin per unit 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 Fixed expenses Net operating income $ 80,000 52.000 28,000 21,840 $ 6,160 3. What is the variable expense ratio? es Variable expense ratio 10 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 incone $ 80,000 52,000 28,000 21,840 $ 6,160 5. If sales decline to 900 units, what would be the net operating income? 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 Fixed expenses Net operating incone $ 80,000 52,000 28,800 21,840 $ 6,160 7. If the variable cost per unit increases by $1, spending on advertising increases by $1700, and unit sales increase by 240 units, what would be the net operating income? Net operating income CH 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 incone $ 80,000 52,000 28,000 21,840 $ 6,160 7. If the variable cost per unit increases by S1, spending on advertising increases by $1,700, and unit sales increase by 240 units, what would be the net operating income? Nel 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 $ 80,000 52,00 28,000 21,840 $ 6,160 8. What is the break-even point in unit sales? Break-even point units 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 $ 80, een 52,000 28,000 21,840 $ 6,160 9. What is the break-even point in dollar sales? Break-even point 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 $ 80,000 52,000 28.000 21,840 $ 6,160 10. How many units must be sold to achieve a target profit of $16,800? Number of units 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 Fixed expenses Net operating income $ 80,000 52,800 28,000 21,840 $ 6,160 13. Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 5% increase in unit 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 Fixed expenses Net operating incone $ 80,000 52,000 28,000 21,340 $ 6,160 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 $21,840 and the total fixed expenses are $52,000. 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 Net operating income $ 80,eee 52.ee 28, cee 21,840 $ 6,162 15. Assume that the amounts of the company's total variable expenses and total foed expenses were reversed. In other words, assume that the total variable expenses are $21,840 and the total foed expenses are $52,000. Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 5% increase in unit sales? (Round your intermediate calculations and final answer to 2 decimal places.) Increase in net operating income %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Report On Trade Conditions In China

Authors: Harry R. Burrill, Raymond F. Crist

1st Edition

1138617806, 9781138617803

More Books

Students also viewed these Accounting questions

Question

How do I feel just after I give in to my bad habit?

Answered: 1 week ago

Question

b. A workshop on stress management sponsored by the company

Answered: 1 week ago