Required information The Foundational 15 (LO6-1, LO6-3, L06-4, L06-5, L06-6, LO6-7, LO6-8) 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 Required: 1. What is the contribution margin per unit? (Round your answer to 2 decimal places.) Contribution margin per unit Foundational 6-2 2. What is the contribution margin ratio? Contribution margin ratio % Foundational 6-3 3. What is the variable expense ratio? Variable expense ratio % Foundational 6-4 4. If sales increase to 1,001 units, what would be the increase in net operating income? (Round yc Increase in net operating income SISIES Foundational 6-5 5. If sales decline to 900 units, what would be the net operating income? Net operating income Foundational 6-7 7. If the variable cost per unit increases by S1. spending on advertising increases by $1,500 and unit sales increase by 200 units, what would be the net operating income? Nutracom Foundational 6-8 herences 8. What is the break-even point in unit sales? Breakiven point units ences Foundational 6-9 9. What is the break-even point in dollar sales? Break-even point rences Foundational 6-10 10. How many units must be sold to achieve a target profit of $12.600? Number of units Foundational 6-11 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 % 12. What is the degree of operating leverage? (Round your answer to 2 decimal places.) Pogree of operating leverage Foundational 6-13 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 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 leverage 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.)
