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 $ 60,000 Variable expenses 39,000 Contribution margin 21,000 Fixed expenses 14,700 Net operating income $ 6,300 10. How many units must be sold to achieve a target profit of $12,600? 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 your answer to 2 decimal places.)
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 $ 60,000 Variable expenses 39,000 Contribution margin 21,000 Fixed expenses 14,700 Net operating income $ 6,300 10. How many units must be sold to achieve a target profit of $12,600? 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 your answer to 2 decimal places.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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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 | $ 60,000 |
|---|---|
| Variable expenses | 39,000 |
| Contribution margin | 21,000 |
| Fixed expenses | 14,700 |
| Net operating income | $ 6,300 |
10. How many units must be sold to achieve a target profit of $12,600?
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 your answer to 2 decimal places.)
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