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 $ 20,000 Variable expenses 12,000 Contribution margin 8,000 Fixed expenses 6,000 Net operating income $ 2,000 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 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 $ 20,000 Variable expenses 12,000 Contribution margin 8,000 Fixed expenses 6,000 Net operating income $ 2,000 7. Ir the variable cost per unit increases by $1. spending on advertising Increases by $1.500, and unit sales increase by 250 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 $ 20,000 Variable expenses 12,000 Contribution margin 8,800 Fixed expenses 6,000 Net operating income $ 2,000 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 $ 20,000 Variable expenses 12,000 Contribution margin 8,000 Fixed expenses 6,000 Net operating income $ 2,000 9. What is the break-even point in dollar sales? Break-even point 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 $ 20,000 Variable expenses 12,000 Contribution margin 8,888 Fixed expenses 6,000 Net operating income $ 2,000 10. How many units must be sold to achieve a target profit of $5,000? 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 $ 20,000 Variable expenses 12,000 Contribution margin 8,000 Fixed expenses 6,000 Net operating income $ 2,000 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 $ 20,000 Variable expenses 12,000 Contribution margin 8,000 Fixed expenses Net operating income $ 2,000 6,000 12. What is the degree of operating leverage? 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 $ 20,000 Variable expenses 12,eve Contribution margin 8,800 Fixed expenses 6,000 Net operating income $ 2,000 13. Using the degree of operating leverago, what is the estimated percent increase in net operating income of a 5% increase in unit sales? Increase in not operating incomo % 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 $ 20,000 Variable expenses 12,000 Contribution margin 8,000 Fixed expenses 6,000 Net operating income $2,000 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 $6,000 and the total fixed expenses are $12,000. Under this scenarlo and assuming that total sales remain the same, what is the degree of operating leverage? Degree of operating leverage 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 $ 20,000 Variable expenses 12,000 Contribution margin 8,000 Fixed expenses 6,000 Net operating income $ 2,000 15. 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 $6,000 and the total fixed expenses are $12,000. Using the degree of operating toverage. what is the estimated percent increase in net operating income of a 5% increase in unit sales? Increase in net operating income %
