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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 O: Sales $ 55,000 Variable expenses 33,000 Contribution margin 22, 000 Fixed expenses 14,960 Net operating income $ 7,040 Required: 7. 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 net operating income? Note: Round "Per

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 O: Sales $ 55,000 Variable expenses 33,000 Contribution margin 22, 000 Fixed expenses 14,960 Net operating income $ 7,040 Required: 7. 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 net operating income? Note: Round "Per

FINANCIAL ACCOUNTING
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 $ 55,000 Variable expenses 33,000 Contribution margin 22,000 Fixed expenses 14, 960 Net operating income $ 7,040 Required: 7. 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 net operating income? Note: Round "Per Unit" calculations to 2 decimal places.
Transcribed Image Text: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 $ 55,000 Variable expenses 33,000 Contribution margin 22,000 Fixed expenses 14, 960 Net operating income $ 7,040 Required: 7. 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 net operating income? Note: Round "Per Unit" calculations to 2 decimal places.
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