[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 Net operating income $ 1,692 1.value: 0.50 pointsRequired information Required: 1. What is the contribution margin per unit? (Round your answer to 2 decimal places.) ReferenceseBook & Resources WorksheetLearning Objective: 05-03 Use the contribution margin ratio (CM ratio) to compute changes in contribution margin and net operating income resulting from changes in sales volume.Learning Objective: 05-06 Determine the level of sales needed to achieve a desired target profit. Difficulty: 2 MediumLearning Objective: 05-04 Show the effects on net operating income of changes in variable costs, fixed costs, selling price, and volume.Learning Objective: 05-07 Compute the margin of safety and explain its significance. Learning Objective: 05-01 Explain how changes in activity affect contribution margin and net operating income.Learning Objective: 05-05 Determine the break-even point.Learning Objective: 05-08 Compute the degree of operating leverage at a particular level of sales and explain how it can be used to predict changes in net operating income. Check my work 2.value: 0.50 pointsRequired information 2. What is the contribution margin ratio? Round your percentage answer to 2 decimal places (i.e .1234 should be entered as 12.34). ReferenceseBook & Resources WorksheetLearning Objective: 05-03 Use the contribution margin ratio (CM ratio) to compute changes in contribution margin and net operating income resulting from changes in sales volume.Learning Objective: 05-06 Determine the level of sales needed to achieve a desired target profit. Difficulty: 2 MediumLearning Objective: 05-04 Show the effects on net operating income of changes in variable costs, fixed costs, selling price, and volume.Learning Objective: 05-07 Compute the margin of safety and explain its significance. Learning Objective: 05-01 Explain how changes in activity affect contribution margin and net operating income.Learning Objective: 05-05 Determine the break-even point.Learning Objective: 05-08 Compute the degree of operating leverage at a particular level of sales and explain how it can be used to predict changes in net operating income. Check my work 3.value: 0.50 pointsRequired information 3. What is the variable expense ratio? Round your percentage answer to 2 decimal places (i.e .1234 should be entered as 12.34). ReferenceseBook & Resources WorksheetLearning Objective: 05-03 Use the contribution margin ratio (CM ratio) to compute changes in contribution margin and net operating income resulting from changes in sales volume.Learning Objective: 05-06 Determine the level of sales needed to achieve a desired target profit. Difficulty: 2 MediumLearning Objective: 05-04 Show the effects on net operating income of changes in variable costs, fixed costs, selling price, and volume.Learning Objective: 05-07 Compute the margin of safety and explain its significance. Learning Objective: 05-01 Explain how changes in activity affect contribution margin and net operating income.Learning Objective: 05-05 Determine the break-even point.Learning Objective: 05-08 Compute the degree of operating leverage at a particular level of sales and explain how it can be used to predict changes in net operating income. Check my work 4.value: 0.50 pointsRequired information 4. If sales increase to 1,001 units, what would be the increase in net operating income? (Round your answer to 2 decimal places.) ReferenceseBook & Resources WorksheetLearning Objective: 05-03 Use the contribution margin ratio (CM ratio) to compute changes in contribution margin and net operating income resulting from changes in sales volume.Learning Objective: 05-06 Determine the level of sales needed to achieve a desired target profit. Difficulty: 2 MediumLearning Objective: 05-04 Show the effects on net operating income of changes in variable costs, fixed costs, selling price, and volume.Learning Objective: 05-07 Compute the margin of safety and explain its significance. Learning Objective: 05-01 Explain how changes in activity affect contribution margin and net operating income.Learning Objective: 05-05 Determine the break-even point.Learning Objective: 05-08 Compute the degree of operating leverage at a particular level of sales and explain how it can be used to predict changes in net operating income. Check my work 5.value: 0.50 pointsRequired information 5. If sales decline to 900 units, what would be the net operating income? (Do not round intermediate calculations.) ReferenceseBook & Resources WorksheetLearning Objective: 05-03 Use the contribution margin ratio (CM ratio) to compute changes in contribution margin and net operating income resulting from changes in sales volume.Learning Objective: 05-06 Determine the level of sales needed to achieve a desired target profit. Difficulty: 2 MediumLearning Objective: 05-04 Show the effects on net operating income of changes in variable costs, fixed costs, selling price, and volume.Learning Objective: 05-07 Compute the margin of safety and explain its significance. Learning Objective: 05-01 Explain how changes in activity affect contribution margin and net operating income.Learning Objective: 05-05 Determine the break-even point.Learning Objective: 05-08 Compute the degree of operating leverage at a particular level of sales and explain how it can be used to predict changes in net operating income. Check my work 6.value: 0.50 pointsRequired information 6. If the selling price increases by $1.80 per unit and the sales volume decreases by 100 units, what would be the net operating income? (Do not round intermediate calculations.) ReferenceseBook & Resources WorksheetLearning Objective: 05-03 Use the contribution margin ratio (CM ratio) to compute changes in contribution margin and net operating income resulting from changes in sales volume.Learning Objective: 05-06 Determine the level of sales needed to achieve a desired target profit. Difficulty: 2 MediumLearning Objective: 05-04 Show the effects on net operating income of changes in variable costs, fixed costs, selling price, and volume.Learning Objective: 05-07 Compute the margin of safety and explain its significance. Learning Objective: 05-01 Explain how changes in activity affect contribution margin and net operating income.Learning Objective: 05-05 Determine the break-even point.Learning Objective: 05-08 Compute the degree of operating leverage at a particular level of sales and explain how it can be used to predict changes in net operating income. Check my work 7.value: 0.50 pointsRequired information 7. If the variable cost per unit increases by $.80, spending on advertising increases by $1,300, and unit sales increase by 250 units, what would be the net operating income? (Do not round intermediate calculations.) ReferenceseBook & Resources WorksheetLearning Objective: 05-03 Use the contribution margin ratio (CM ratio) to compute changes in contribution margin and net operating income resulting from changes in sales volume.Learning Objective: 05-06 Determine the level of sales needed to achieve a desired target profit. Difficulty: 2 MediumLearning Objective: 05-04 Show the effects on net operating income of changes in variable costs, fixed costs, selling price, and volume.Learning Objective: 05-07 Compute the margin of safety and explain its significance. Learning Objective: 05-01 Explain how changes in activity affect contribution margin and net operating income.Learning Objective: 05-05 Determine the break-even point.Learning Objective: 05-08 Compute the degree of operating leverage at a particular level of sales and explain how it can be used to predict changes in net operating income. Check my work 8.value: 0.50 pointsRequired information 8. What is the break-even point in unit sales? (Do not round intermediate calculations.) ReferenceseBook & Resources WorksheetLearning Objective: 05-03 Use the contribution margin ratio (CM ratio) to compute changes in contribution margin and net operating income resulting from changes in sales volume.Learning Objective: 05-06 Determine the level of sales needed to achieve a desired target profit. Difficulty: 2 MediumLearning Objective: 05-04 Show the effects on net operating income of changes in variable costs, fixed costs, selling price, and volume.Learning Objective: 05-07 Compute the margin of safety and explain its significance. Learning Objective: 05-01 Explain how changes in activity affect contribution margin and net operating income.Learning Objective: 05-05 Determine the break-even point.Learning Objective: 05-08 Compute the degree of operating leverage at a particular level of sales and explain how it can be used to predict changes in net operating income. Check my work 9.value: 0.50 pointsRequired information 9. What is the break-even point in dollar sales? (Round intermediate calculations to 4 decimal places. Round your final answer to the nearest dollar amount.) rev: 03_10_2015_QC_CS-10418 ReferenceseBook & Resources WorksheetLearning Objective: 05-03 Use the contribution margin ratio (CM ratio) to compute changes in contribution margin and net operating income resulting from changes in sales volume.Learning Objective: 05-06 Determine the level of sales needed to achieve a desired target profit. Difficulty: 2 MediumLearning Objective: 05-04 Show the effects on net operating income of changes in variable costs, fixed costs, selling price, and volume.Learning Objective: 05-07 Compute the margin of safety and explain its significance. Learning Objective: 05-01 Explain how changes in activity affect contribution margin and net operating income.Learning Objective: 05-05 Determine the break-even point.Learning Objective: 05-08 Compute the degree of operating leverage at a particular level of sales and explain how it can be used to predict changes in net operating income. Check my work 10.value: 0.50 pointsRequired information 10. How many units must be sold to achieve a target profit of $5,546? (Do not round intermediate calculations.) ReferenceseBook & Resources WorksheetLearning Objective: 05-03 Use the contribution margin ratio (CM ratio) to compute changes in contribution margin and net operating income resulting from changes in sales volume.Learning Objective: 05-06 Determine the level of sales needed to achieve a desired target profit. Difficulty: 2 MediumLearning Objective: 05-04 Show the effects on net operating income of changes in variable costs, fixed costs, selling price, and volume.Learning Objective: 05-07 Compute the margin of safety and explain its significance. Learning Objective: 05-01 Explain how changes in activity affect contribution margin and net operating income.Learning Objective: 05-05 Determine the break-even point.Learning Objective: 05-08 Compute the degree of operating leverage at a particular level of sales and explain how it can be used to predict changes in net operating income. Check my work 11.value: 0.50 pointsRequired information 11-a. What is the margin of safety in dollars? (Do not round intermediate calculations.) 11-b. What is the margin of safety percentage? (Round your final answers to the nearest whole percentage (i.e, .12 should be entered as 12).) ReferenceseBook & Resources WorksheetLearning Objective: 05-03 Use the contribution margin ratio (CM ratio) to compute changes in contribution margin and net operating income resulting from changes in sales volume.Learning Objective: 05-06 Determine the level of sales needed to achieve a desired target profit. Difficulty: 2 MediumLearning Objective: 05-04 Show the effects on net operating income of changes in variable costs, fixed costs, selling price, and volume.Learning Objective: 05-07 Compute the margin of safety and explain its significance. Learning Objective: 05-01 Explain how changes in activity affect contribution margin and net operating income.Learning Objective: 05-05 Determine the break-even point.Learning Objective: 05-08 Compute the degree of operating leverage at a particular level of sales and explain how it can be used to predict changes in net operating income. Check my work 12.value: 0.50 pointsRequired information 12. What is the degree of operating leverage? (Round your answer to 2 decimal places.) ReferenceseBook & Resources WorksheetLearning Objective: 05-03 Use the contribution margin ratio (CM ratio) to compute changes in contribution margin and net operating income resulting from changes in sales volume.Learning Objective: 05-06 Determine the level of sales needed to achieve a desired target profit. Difficulty: 2 MediumLearning Objective: 05-04 Show the effects on net operating income of changes in variable costs, fixed costs, selling price, and volume.Learning Objective: 05-07 Compute the margin of safety and explain its significance.