Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Use photo below to answer questions 10) how many units must be sold to achieve target profit of $8400? 11) What is the margin of

Use photo below to answer questions image text in transcribed
10) how many units must be sold to achieve target profit of $8400?
11) What is the margin of safety in dollars? What is the margin of safety percentage?
12) What is the degree of operating leverage (Round answer to 2 decimal places)
13) using the degree of operating leverage, what is the estimated percent increase in net operating income of a 5% in sales? (Round your answer to 2 decimal places )
14) Assume that the amounts of the companys total variable expenses and total fixed expenses were reversed. In other words, assume that the total variable expenses are $8,400 and the total fixed expenses are $21,000. 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.)
15)Assume that the amounts of the companys total variable expenses and total fixed expenses were reversed. In other words, assume that the total variable expenses are $8,400 and the total fixed expenses are $21,000. Given this scenario and assuming that total sales remain the same, calculate the degree of operating leverage. 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.)
PLEASW ANSWER ALL OF THE QUESTIONS!
0 Required information The Foundational 15 [LO5-1, LO5-3, LO5-4, LO5-5, LOS-6, LO5-7, LO5-8] 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 $ 35,000 21,000 14,000 8,400- $5,600

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Access Audit Handbook An Inclusive Approach To Auditing Buildings

Authors: Centre For Accessible Environments

3rd Edition

1914124839, 978-1914124839

More Books

Students also viewed these Accounting questions

Question

What do you mean by dual mode operation?

Answered: 1 week ago

Question

Explain the difference between `==` and `===` in JavaScript.

Answered: 1 week ago

Question

Classify delivery styles by type.

Answered: 1 week ago