Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required information The Foundational 15 (L06-1, LO6-3, LO6-4, L06-5, L06-6, LO6-7, L06-8] [The following information applies to the questions displayed below) Oslo Company prepared the

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
image text in transcribed
Required information The Foundational 15 (L06-1, LO6-3, LO6-4, L06-5, L06-6, LO6-7, L06-8] [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 $ 60,000 39,000 21.000 14,700 $ 6,300 Foundational 6-5 5. If sales decline to 900 units, what would be the net operating income? Net operating income Foundational 6-6 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? Foundational 6-7 7. If the variable cost per unit increases by 51, spending on advertising increases by $1.500, and unit sales increase by 200 units, what would be the net operating income? References 8. What is the break-even point in unit sales? Break-even point units References 9. What is the break-even point in dollar sales? Break-even point 10. How many units must be sold to achieve a target profit of $12,600? Number of units ences 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 % Foundational 6-12 ences 12. What is the degree of operating leverage? (Round your answer to 2 decimal places.) Degree or operating leverage 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.) Incinet operating income % 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 $14.700 and the total fixed expenses are $39,000. 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 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 $14.700 and the total fixed expenses are $39.000. 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.) leicht in het patating escorte %

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

Step: 3

blur-text-image

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

Financial Markets And Institutions

Authors: Peter Howells, Keith Bain

5th Edition

0273709194, 9780273709190

More Books

Students also viewed these Accounting questions

Question

a sin(2x) x Let f(x)=2x+1 In(be)

Answered: 1 week ago