Oslo Company prepared the followingcontribution format income statementbased on a sales volume of 1,000 units(the relevant range of production is500 units to 1,500 units): Sales $24,200 Variable expenses 13,400Contribution margin 10,800 Fixedexpenses 7,668 Net operating income$ 3,132 Required: If sales declined to900 units, what would be the netoperating income? (Do not roundintermediate calculations.)

Lets understand the basics. Net operating income is a amount derived by deducting fixed costs from…

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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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
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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 $ 85,000 Variable expenses 59,500 Contribution margin 25,500 Fixed expenses 20,400 Net operating income $ 5,100 14. 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 $20,400 and the total fixed expenses are $59,500. Under this scenario and assuming that total sales remain the same, what is the degree of operating leverage? (Round your answer to 2 decimal places.)
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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): $ 45,000 31,500 Sales Variable expenses Contribution margin Fixed expenses 13,500 8,640 Net operating income $ 4,860 10. How many units must be sold to achieve a target profit of $8,100? Number of units
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 $ 60,000 39,000 Net operating income 21,000 14,700 $ 6,300 Required: 5. If sales decline to 900 units, what would be the net operating income? Note: Round "Per Unit" calculations 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 $ 15,000 Variable expenses 9,000 Contribution margin 6,000 Fixed expenses 3,120 Net operating income $ 2,880 14. 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 $3,120 and the total fixed expenses are $9,000. Under this scenario and assuming that total sales remain the same, what is the degree of operating leverage? (Round your answer to 2 decimal places.)
[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 $ 100,000 Variable expenses 65,000 Contribution margin 35,000 Fixed expenses 30,100 Net operating income $ 4,900 9. What is the break-even point in dollar sales?
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 6-14 (Static) 14. 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 $6,000 and the total fixed expenses are $12,000. Under this scenario and assuming that total sales remain the same, what is the degree of operating leverage? Degree of operating leverage
Sealtek Inc has provided its contribution format income statement data below for September Sales (1500 units) $47,250 Variable Expenses ($11,235) Fixed Expenses ($27,000) Calculate the Contribution Margin per unit. Multiple Choice $7.49 $31.50 $24.01 $18
Oslo company prepared the following contribution format income statement based on a sales volume of 1000 units. Sales 80,000 Variable expenses 52000 Contribution margin 28000 fixed expenses 21840 net operating income 6160. What is the break-even point in unit sales?
range of production is 500 units to 1,500 units): Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant Mc Graw Hill 'Z² ± 080 2 A Sales Variable expenses Contribution margin Z Fixed expenses Net operating income Contribution margin per unit 2 Required: What is the contribution margin per unit? (Round your answer to 2 decimal places.) F2 ((1:1) @ W S F3 # 3 X Alt / £ E D F4 $ 4 $ C ¢ $ R 23,900 13,300 10,600 7,632 2,968 F F5 OIO % 5 V F6 粥 ¤ T G л 6 B F7 ? Y H F8 & 7 N Jy L § F12 ) 0 14 Alt Car Scr Lk Arrêtdef P - PrtSc/Imprecr. SysRq/Syst. 目 1½/2 2 + 11 ? Pause Break/Interr. 1 | | ^ = 3/4 A } >> \ o « Insert ]] < Delete/Suppr. V. A V 1 ▷

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