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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

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 $ 100,000
Variable expenses 65,000
Contribution margin 35,000
Fixed expenses 30,100
Net operating income $ 4,900

7. If the variable cost per unit increases by $1, spending on advertising increases by $1,900, and unit sales increase by 280 units, what would be the net operating income?

8. What is the break-even point in unit sales?

9. What is the break-even point in dollar sales?

10. How many units must be sold to achieve a target profit of $21,000?

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