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 of1,000 units (the relevant range of production is 500 units to 1,500 units):SalesVariable expensesContribution marginFixed expensesNet operating income$ 20,00013,0007,0003,780$ 3,2206. If the selling price increases by $2 per unit and the sales volume decreases by 100 units, what would be the netoperating income?Note: Round "Per Unit" calculations to 2 decimal places.Net operating income

Contribution margin per unit = Selling price per unit - Variable cost per unit. Current selling…

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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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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: $ 80,000 52,000 28,000 21,848 $ 6,160 15. 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 $21,840 and the total fixed expenses are $52,000. Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 5% increase in unit sales? (Round your intermediate calculations and final answer to 2 decimal places.) Increase in net operating income
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 Degree of operating leverage 8,000 6,000 $ 2,000 Foundational 6-12 (Static) 12. What is the degree of operating leverage?
Haresh
[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 $ 15,000 Variable expenses 9,000 Contribution margin 6,000 Fixed expenses 3,120 Net operating income $ 2,880 15. 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. Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 5% increase in unit sales? (Round your intermediate calculations and final 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 S 24, 500 Variable expenses 13, 500 Contribution margin 11, 000 Fixed expenses 7, 700 Operating income $ 3, 300 7. If the variable cost per unit increases by $1.50, spending on advertising increases by S2, 000, and unit sales increase by 250 units, what would be the operating income? (Do not round intermediate calculations
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 $ 10,000 5,500 4,500 2,250 Net operating income 2,250 12. What is the degree of operating leverage? (Round your answer to 2 decimal places.) Degree of operating leverage
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 $ 90,000 49,500 9. What is the break-even point in dollar sales? 40,500 33,210 $ 7,290
Please do not give solution in image format thanku
Alpesh
! 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 Margin of safety in dollars Margin of safety percentage 11. What is the margin of safety in dollars? What is the margin of safety percentage? $ 20 $ 20,000 12,000 % 8,000 6,000 $ 2,000
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