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 $ 105,000 Variable expenses 73,500 Contribution margin 31, 500 Fixed expenses 27, 720 Net operating income $ 3,780 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 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 $ 105,000 Variable expenses 73,500 Contribution margin 31, 500 Fixed expenses 27, 720 Net operating income $ 3,780 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 2 decimal places.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 $ 105,000 Variable expenses
73,500 Contribution margin 31,500 Fixed expenses 27, 720 Net operating income $ 3,780 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 2 decimal places.
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