Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

[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 $ 60,000
Variable expenses 39,000
Contribution margin 21,000
Fixed expenses 14,700
Net operating income $ 6,300

10. How many units must be sold to achieve a target profit of $12,600?

11. What is the margin of safety in dollars? What is the margin of safety percentage?

12. What is the degree of operating leverage? (Round your answer to 2 decimal places.)

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.)

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

The Leadership Style At PT Tekstil Bandung A Management Audit Investigation Following The Prolonged Economic Slowdown In Indonesia

Authors: Samuel P.D. Anantadjaya, Irma M. Nawangwulan

1st Edition

3659328979, 978-3659328978

More Books

Students also viewed these Accounting questions

Question

=+e. Compute the mean and median for the highest cost premium data.

Answered: 1 week ago