[The following information applies to the questions displayed below.] Oslo Company prepared the following contribution format...
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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 Variable expenses $ 70,000 38,500 31,500 23,310 Net operating income $8,190 Contribution margin Fixed expenses Required: 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 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 $ 70,000 38,500 31,500 23,310 Net operating income $ 8,190 Fixed expenses Required: 12. What is the degree of operating leverage? Note: Round your answer to 2 decimal places. Degree of operating leverage 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 $ 70,000 38,500 31,500 23,310 $ 8,190 Required: 13. Using the degree of operating leverage, what is the estimated percent increase in net operating Income that would result from a 5% increase in unit sales? Note: Round your intermediate calculations and final answer to 2 decimal places. Increase in not operating income % 15 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 $70,000 38,500 31,500 23,310 $8,190 Required: 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 $23,310 and the total fixed expenses are $38,500. Under this scenario and assuming that total sales remain the same, what is the degree of operating leverage? Note: Round your answer to 2 decimal places. Degree of operating leverage 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 $ 70,000 38,500 31,500 23,310 $ 8,190 Required: 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 $23,310 and the total fixed expenses are $38,500. Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 5% increase in unit sales? Note: Round your intermediate calculations and final answer to 2 decimal places. Increase in net operating income % [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 $ 70,000 38,500 31,500 23,310 Net operating income $8,190 Contribution margin Fixed expenses Required: 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 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 $ 70,000 38,500 31,500 23,310 Net operating income $ 8,190 Fixed expenses Required: 12. What is the degree of operating leverage? Note: Round your answer to 2 decimal places. Degree of operating leverage 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 $ 70,000 38,500 31,500 23,310 $ 8,190 Required: 13. Using the degree of operating leverage, what is the estimated percent increase in net operating Income that would result from a 5% increase in unit sales? Note: Round your intermediate calculations and final answer to 2 decimal places. Increase in not operating income % 15 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 $70,000 38,500 31,500 23,310 $8,190 Required: 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 $23,310 and the total fixed expenses are $38,500. Under this scenario and assuming that total sales remain the same, what is the degree of operating leverage? Note: Round your answer to 2 decimal places. Degree of operating leverage 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 $ 70,000 38,500 31,500 23,310 $ 8,190 Required: 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 $23,310 and the total fixed expenses are $38,500. Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 5% increase in unit sales? Note: Round your intermediate calculations and final answer to 2 decimal places. Increase in net operating income %
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Related Book For
Managerial Accounting
ISBN: 9781260193275
12th Canadian Edition
Authors: Ray H. Garrison, Alan Webb, Theresa Libby
Posted Date:
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