Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 Units (therelevant range of production is 500 units to 1,500 units):SalesVariable expensesContribution marginFixed expenses$ 15,0009,0006,0003,120Net operating income$2,8804. 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

Fixed expenses are those costs which do not fluctuate with changes in production level or sales…

Answered: 4. If sales increase to 1,001 units,…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Until recently, Augean Cleaning Products sold its products on terms of net 70, with an average collection period of 85 days. In an attempt to induce customers to pay more promptly, it has changed its terms to 1/10, EOM, net 70. Assume current sales of $100, costs of $90, an interest rate of 12%, and no defaults. Assume each month has 30 days and a year has 360 days. The initial effect of the changed terms is as follows: Percent of Sales with Cash Discount 70 Average Collection Periods (Days) Cash Discount 40a Net present value Net 90 Some customers deduct the cash discount even though they pay after the specified date. a. Calculate the NPV per $100 of sales based on the original terms. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
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Suppose the following model describes changes in Company ABC’s sales: ∆ ABCt = 0.078 - 0.095(∆ ABCt-1) The current change (first difference) in the company’s sales growth rate is 0.04. Use this information to answer the questions below. (NB: For all the questions below, give your final answers to 3 decimal places.) 1. Calculate the mean-reverting level for changes in the company’s sales growth rate. (Give your answer in decimals). 2. What is the best prediction of the next change? (Give your answer in decimals) 3. What is the prediction of the change following the next change? (Give your answer in decimals) 4. blanks. Suppose we want to compute the four-quarter moving average of Company ABC’s sales as of the beginning of the first quarter of 2022. ABCs sales in the previous four quarters were as follows: 1Q 2021, R 1,200,000; 2Q 2021, R 800,000; 3Q 2021, R 750,000; and 4Q 2021, R 1,600,000. Calculate the four-quarter moving average of sales as of the beginning of the first…
What is the discount rate at which the following cash flows have a NPV of $0? Answer in %, rounding to 2 decimals.Year 0 cash flow = -116,000Year 1 cash flow = 28,000Year 2 cash flow = 43,000Year 3 cash flow = 38,000Year 4 cash flow = 41,000Year 5 cash flow = 40,000Year 6 cash flow = 37,000
4 ..... please help me

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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