Question
[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
[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 | $ | 22,100 |
Variable expenses | 12,700 | |
Contribution margin | 9,400 | |
Fixed expenses | 7,708 | |
Operating income | $ | 1,692 |
Required:
1. What is the contribution margin per unit? (Round your answer to 2 decimal places.)
[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 | $ | 22,100 |
Variable expenses | 12,700 | |
Contribution margin | 9,400 | |
Fixed expenses | 7,708 | |
Operating income | $ | 1,692 |
2. What is the contribution margin ratio? (Round your percentage answer to 2 decimal places (i.e .1234 should be entered as 12.34)).
[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 | $ | 22,100 |
Variable expenses | 12,700 | |
Contribution margin | 9,400 | |
Fixed expenses | 7,708 | |
Operating income | $ | 1,692 |
6. If the selling price increases by $1.80 per unit and the sales volume decreases by 100 units, what would be the operating income? (Do not round intermediate calculations.)
[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 | $ | 22,100 |
Variable expenses | 12,700 | |
Contribution margin | 9,400 | |
Fixed expenses | 7,708 | |
Operating income | $ | 1,692 |
8. What is the break-even point in unit sales? (Do not round intermediate calculations.)
Required information
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[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 | $ | 22,100 |
Variable expenses | 12,700 | |
Contribution margin | 9,400 | |
Fixed expenses | 7,708 | |
Operating income | $ | 1,692 |
9. What is the break-even point in dollar sales? (Round intermediate calculations to 4 decimal places. Round your answer to the nearest dollar amount.)
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[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 | $ | 22,100 |
Variable expenses | 12,700 | |
Contribution margin | 9,400 | |
Fixed expenses | 7,708 | |
Operating income | $ | 1,692 |
10. How many units must be sold to achieve a target profit of $5,546? (Do not round intermediate calculations.)
Required information
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[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 | $ | 22,100 |
Variable expenses | 12,700 | |
Contribution margin | 9,400 | |
Fixed expenses | 7,708 | |
Operating income | $ | 1,692 |
11-a. What is the margin of safety in dollars? (Do not round intermediate calculations.)
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