Oslo company prepared the following contrubition format income statement based on a sales volume of 1,000 unites (the relevant range of production is 500 units to 1,500 units). Sales.... $20,000 Variable expenses ... 12,000 Contribution margin .... 8,000 Fixed expenses ... 6,000 Net operating income... $2,000 4) If the sales increase to 1,001 units, what would be the increase in net operating income ? 5) If sales decline to 900 units , what would be the net operating income? 6) If selling price increases by $2 per unit and the sales volume decreases by 100 units , what would be the net operating income ?
Oslo company prepared the following contrubition format income statement based on a sales volume of 1,000 unites (the relevant range of production is 500 units to 1,500 units).
Sales.... $20,000
Variable expenses ... 12,000
Contribution margin .... 8,000
Fixed expenses ... 6,000
Net operating income... $2,000
4) If the sales increase to 1,001 units, what would be the increase in net operating income ?
5) If sales decline to 900 units , what would be the net operating income?
6) If selling price increases by $2 per unit and the sales volume decreases by 100 units , what would be the net operating income ?
Net operating income is the measure of the profit of the business that reports on its income statement. And it equals to the aggregate operating revenue less aggregate operating expenses.
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