Oslo Company prepared the following contribution format incomestatement based on a sales volume of 1,000 units (the relevant range ofproduction is 500 units to 1,500 units):Sales $24,800Variable expenses 13,600Contribution margin 11,200Fixed expenses 7,728Net operating income $ 3,472Required:If sales decline to 900 units, what would be the net operating income?

Step 1: Identify the Contribution Margin Per UnitThe contribution margin per unit is calculated as:…

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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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 13,000 Contribution margin 7,000 Fixed expenses 3,780 Net operating income $ 3,220 Questions: A) If sales increase to 1,001 units, what would be the increase in net operating income? (Round your answer to 2 decimal places.) B) If sales decline to 900 units, what would be the net operating income? C) If the selling price increases by $2 per unit and the sales volume decreases by 100 units, what would be the net operating income? (SAME DATA AS ATTACHED PICS- SUBMISSION BOX WOULDN'T ALLOW FOR MORE THAN 2 ATTACHMENTS)
Help me to solve this financial account problems
The company has a desired net income of $53,991 per service outlet. What is the dollar amount of each type of service that must be performed by each service outlet to meet its target net income per outlet? (Use Weighted-Average Contribution Margin Ratio rounded to 2 decimal places e.g. 0.25 and round final answers to O decimal places, e.g. 2,510.) Sales Dollars Needed Per Service Outlet Oil changes $ Brake repair $
The Mariachi Company prepared the following contribution format income statement based on a sales volume of 1,200 units (the relevant range of production is 500 units to 2,000 units): Sales 26,400Variable expenses 18,000Contribution margin 8,400Fixed expenses 6,200Net operating income 2,200 What is the break-even point in dollar sales?
Sheridan Repairs has 200 auto-maintenance service outlets nationwide. It performs primarily two lines of service: oil changes and brake repair. Oil change-related services represent 80% of its sales and provide a contribution margin ratio of 20%. Brake repair represents 20% of its sales and provides a 40% contribution margin ratio. The company's fixed costs are $15,580,800 (that is, $77,904 per service outlet). Sales mix is determined based upon total sales dollars.
Data from a company's last period of operations shows sales of 2,000 units, total contribution margin of P50,000, and income after subtracting fixed costs of P30,000 is P20,000. Should the company experience sales of 2,400 units (within the relevant range, no sales price increase), net income will be: a.P40,000 b.P30,000 c.P10,000 d.P20,000
kau.4
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 40,500 33,210 $ 7,290 4 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? Note: Round "Per Unit" calculations to ? decimal places
Vik
A company’s contribution approach income statement showed net operating incomeof $4,000, and fixed expenses of $10,000. How much contribution margin did thecompany earn?a. $29,000b. $15,000c. $19,000d. $14,000
The accountant for PNW, LLC has prepared a contribution format income statement. Assume that the following information is within the relevant range. Sales (9,000 units) Variable expenses Contribution margin Fixed expenses $540,000 405,000 135,000 130,500 Net operating income $ 4,500 Assuming that the information provided is within the relevant range, the contribution margin ratio is closest to:
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.

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