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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 | $ | 10,000 |
| Variable expenses | 5,500 | |
| Contribution margin | 4,500 | |
| Fixed expenses | 2,250 | |
| Net operating income | $ | 2,250 |
6. If the selling price increases by $2 per unit and the sales volume decreases by 100 units, what would be the net operating income?
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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 | $ | 10,000 |
| Variable expenses | 5,500 | |
| Contribution margin | 4,500 | |
| Fixed expenses | 2,250 | |
| Net operating income | $ | 2,250 |
7. If the variable cost per unit increases by $1, spending on advertising increases by $1,000, and unit sales increase by 100 units, what would be the 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 | $ | 10,000 |
| Variable expenses | 5,500 | |
| Contribution margin | 4,500 | |
| Fixed expenses | 2,250 | |
| Net operating income | $ | 2,250 |
8. What is the break-even point in unit sales?
[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 | $ | 10,000 |
| Variable expenses | 5,500 | |
| Contribution margin | 4,500 | |
| Fixed expenses | 2,250 | |
| Net operating income | $ | 2,250 |
9. What is the break-even point in dollar sales?
[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 | $ | 10,000 |
| Variable expenses | 5,500 | |
| Contribution margin | 4,500 | |
| Fixed expenses | 2,250 | |
| Net operating income | $ | 2,250 |
10. How many units must be sold to achieve a target profit of $2,700?
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