!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):SalesVariable expensesContribution marginFixed expensesNet operating income$ 70,00038,50031,50023,310$ 8,190Required:4. If sales increase to 1,001 units, what would be the increase in net operating income?Note: Round your answer to 2 decimal places.Increase in net operating income

Net Operating Income:The net operating income means the gross operating income less operating…

Answered: Oslo Company prepared the following…

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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1) Ehrlich Enterprises prepared the following contribution format income statement based on a sales volume of 3,000 units (the relevant range of production is 1,000 units to 5,000 units): Contribution Margin Income Statement Sales $ 48,000 Variable expenses 30,000 Contribution margin 18,000 Fixed expenses 10,000 Net operating Income $ 8,000 If sales decline to 1,300 units, what would be the net operating income (loss)? If the selling price increases by $3 per unit and the sales volume decreases by 100 units, what would be the net operating income? What is the break-even point in unit sales? What is the break-even point in dollar sales?
Data concerning Strite Corporation's single product appear below: Selling price per unit Variable expense per unit Fixed expense per month Assume the company's target profit is $8,000. The dollar sales to attain that target profit is closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice $1,532,857 $429,200 $596,111 $ 150.00 $ 42.00 $ 421,200 $852,723
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 $ 20,000 Variable expenses 12,000 Contribution margin 8,000 Fixed expenses 6,000 Net operating income $ 2,000 Required: What is the break-even point in sales dollars?
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 Foundational 6-11 (Static) $ 20,000 12,000 8,000 6,000 $ 2,000 11. What is the margin of safety in dollars? What is the margin of safety percentage? Answer is complete but not entirely correct. Margin of safety in dollars Margin of safety percentage %
Graham Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range. Sales (1,000 units) Variable expenses Contribution margin Fixed expenses Net operating income O 0 units O 895 units The break-even point in unit sales is closest to: (Round your intermediate calculations to 2 decimal places.) 700 units $ 50,000 O 650 units 32,500 17,500 12,250 $ 5,250
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): Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 65,000 45,500 19,500 14,040 $5,460 7. If the variable cost per unit increases by $1, spending on advertising increases by $1,550, and unit sales increase by 210 units, what would be the net operating income? Net operating income
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): Sales Variable expenses Contribution margin: Fixed expenses Net operating income: $ 80,000 52,000 28,000 21,848 $ 6,160 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 $21,840 and the total fixed expenses are $52,000. Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 5% increase in unit sales? (Round your intermediate calculations and final answer to 2 decimal places.) Increase in net operating income
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) Sales Variable expenses Contribution margin Fixed expenses $ 10,000 5,500 4,500 2,250 Net operating income 2,250 10. How many units must be sold to achieve a target profit of $2,700? Number of units
Whirly Corporation's contribution format income statement for the most recent month is shown below: Sales (7,800 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 265,200 148, 200 117,000 55,700 $ 61,300 Required: (Consider each case independently): Per Unit $ 34.00 19.00 $15.00 1. What would be the revised net operating income per month if the sales volume increases by 90 units? 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income 2. What would be the revised net operating income per month if the sales volume decreases by 90 units? 3. What would be the revised net operating income per month if the sales volume is 6,800 units?
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
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

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