The Foundational 15 [L06-1, LO6-3, L06-4, LO6-5, LO6-6, LO6-7, LO6-8] {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 Fixed expenses Net operating incon $ 55,000 33,000 22,000 14,960 $7,040 Foundational 6-4 4. If sales increase to 1,001 units, what would be the increase in net operating income? (Round your answer to 2 decimal places.) Increase in net operating income Required Information The Foundational 15 (LO6-1, LO6-3, L06-4, LO6-5, L06-6, L06-7, LO6-8) [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 nargin Fixed expenses Net operating income $ 55,000 33,000 22,000 14,960 $ 7,040 Foundational 6-5 5. If sales decline to 900 units, what would be the net operating income? Not operating income 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 5 55,000 33,000 22,000 14,950 $ 7,940 Foundational 6-6 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? Net operating income 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 $ 55,000 33,000 22,000 14,960 $ 7,040 Foundational 6-7 7. If the variable cost per unit increases by $1, spending on advertising increases by $1,450, and unit sales increase by 190 units, what would be the net operating income? Net operating income The Foundational 15 [LO6-1, LO6-3, L06-4, LO6-5, L06-6, LO6-7, LO6-8] [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 Fixed expenses Net operating income $ 55,000 33,000 22,000 14,960 $ 7,040 Foundational 6-8 8. What is the break-even point in unit sales? Break-even point units Required information The Foundational 15 (LO6-1, LO6-3, L06-4, L06-5, L06-6, LO6-7, LO6-8) {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 Fixed expenses Net operating income $ 55,000 33,000 22,000 14,960 $ 7.040 Foundational 6-9 9. What is the break-even point in dollar sales? Break even point The Foundational 15 (LO6-1, LO6-3, L06-4, LO6-5, L06-6, L06-7, LO6-8) [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 Fixed expenses Net operating income $ 55,000 33,000 22,000 14.960 $ 7.040 Foundational 6-10 10. How many units must be sold to achieve a target profit of $13,2007 Number of unit The Foundational 15 [LO6-1, LO6-3, L06-4, LO6-5, LO6-6, LO6-7, LO6-8) {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 Fixed expenses Net operating income $ 55,000 33,000 22,000 14,960 $ 7,040 Foundational 6-11 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 Foundational 15 (LO6-1, LO6-3, L06-4, L06-5, L06-6, LO6-7, LO6-8) [The following information applies to the questions displayed below] Oslo Company prepared the following contribution format income staternent based on a soles 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 $ 55,000 33,000 22,000 14,960 $ 7.040 Foundational 6-11 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 Foundational 15 [LO6-1, LO6-3, LO6-4, LO6-5, LO6-6, LO6-7, LO6-8] [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 Fixed expenses Net operating income $ 55,000 33,000 22,000 14,960 $7,040 Foundational 6-12 2. What is the degree of operating leverage? (Round your answer to 2 decimal places.) Degree of operating leverago * The Foundational 15 [LO6-1, LO6-3, L06-4, LO6-5, L06-6, LO6-7, LO6-8) [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 Fixed expenses Not operating income $ 55,000 33,000 22,000 14.950 $ 7,040 Foundational 6-13 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.) Inclose in net operating income Required information The Foundational 15 (LO6-1, LO6-3, LO6-4, LO6-5, LO6-6, LO6-7, LO6-8] [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 Fixed expenses Not operating income $ 55,000 33,000 22.000 14.960 $ 7.040 Foundational 6-14 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 $14,960 and the total fixed expenses are $33.000. Under this scenario and assuming that total sales remain the same, what is the degree of operating leverage? (Round your answer to 2 decimal places.) Degree of operating loverage 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 $ 55,000 33,000 22.000 14,950 $ 7.040 Foundational 6-15 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 $14.960 and the total fixed expenses are $33,000. Given this scenario and assuming that total sales remain the some. Using the degree of calculated 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) Increase in ne operating income