Below is the contribution format income statement for a company based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units):- **Sales:** $55,000- **Variable expenses:** $33,000- **Contribution margin:** $22,000- **Fixed expenses:** $14,960- **Net operating income:** $7,040**Scenario Analysis:**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 new net operating income?**Instructions:**(All answers are whole numbers—unless specified otherwise. You should NOT include the $ sign or a comma. For example, you should type 1000 for one thousand. Negative numbers should be added with a minus sign, e.g., -1000 for a decrease or loss of one thousand.)**Response Required:**Net operating income after the changes = $ _______

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Answered: Hei Below is the contribution format…

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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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 S 24, 500 Variable expenses 13, 500 Contribution margin 11, 000 Fixed expenses 7, 700 Operating income $ 3, 300 7. If the variable cost per unit increases by $1.50, spending on advertising increases by S2, 000, and unit sales increase by 250 units, what would be the operating income? (Do not round intermediate calculations
Presented here is the income statement for Big Sky Incorporated for the month of February: Sales $ 60,000 Cost of goods sold 51,900 Gross profit $ 8, 100 Operating expenses 15,200 Operating loss $ (7,100) Based on an analysis of cost behavior patterns, it has been determined that the company's contribution margin ratio is 19%. Required: Rearrange the preceding income statement to the contribution margin format. If sales increase by 10%, what will be the firm's operating income (or loss)? Calculate the amount of revenue required for Big Sky to break even.
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 $ 90,000 49,500 9. What is the break-even point in dollar sales? 40,500 33,210 $ 7,290
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 $ 20,000 12,000 8,000 6,000 $ 2,000 Foundational 6-13 (Static) 13. Using the degree of operating leverage, what is the estimated percent increase in net operating income that would result from a 5% increase in unit sales? Increase in net operating income 96
Remmel Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range. Sales (6,000 units) Variable expenses Contribution margin Fixed expenses Net operating income $ 300,000 240,000 60,000 59,000 $ 1,000 If sales increase to 6,020 units, the increase in net operating income would be closest to: Multiple Choice ○ $1,000.00 ○ $200.00 ○ $800.00 ○ $3.33
s
The GAAP income statement for Carla Vista Company for the year ended December 31, 2022,s shows sale $930,000, cost of good sold $555,000, and operating expenses $235,000. Assuming all costs and expenses are 70% variable and 30% fixed, prepare a CVP income statement through contribution margin.
Required information [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): $ 10,000 5,500 4,500 2,250 Sales Variable expenses Contribution margin Fixed expenses Net operating income 2,250 2. What is the contribution margin ratio? Contribution margin ratio
Vinubhai
A manufacturer's contribution margin income statement for the year follows. Prepare a contribution margin income statement if the number of units sold (a) increases by 300 units and (b) decreases by 300 units. Sales ($12 per unit x 10,300 units) $123,600 Variable costs 72,100 Contribution margin 51,500 Fixed costs Income 41,000 $ 10,500 Sales Variable costs Contribution Margin Income Statement For Year Ended December 31 Contribution margin Fixed costs Income 10,600 units sold 10,000 units sold $ 127,200 $ 120,000 $ 41,000 41,000 *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted.

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