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 $ 45,000 31,500 13,500 8,640 $ 4,860 Net operating income 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 $ 45,000 31,500 13,500 8,640 $ 4,860 Net operating income 10. How many units must be sold to achieve a target profit of $8,100? Number of units

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Given below are part of the recent income statement of Golden Corporation reported this year: Sales revenue P 10,000,000 Variable costs 6,000,000 Fixed costs 3,200,000 If these data are based on the sale of 10,000 units, the contribution margin per unit would be: 80 280 400 920 Group of answer choices 1 2 3 4
[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 $ 60,000 Variable expenses 39,000 Contribution margin 21,000 Fixed expenses 14,700 Net operating income $ 6,300 13. Using the degree of operating leverage, what is the estimated percent increase in net operating income that would result from a 5% increase in unit sales? (Round your intermediate calculations and final answer to 2 decimal places.) 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 $14,700 and the total fixed expenses are $39,000. 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.) 15.…
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 $ 15,000 9,000 6,000 3,120 $ 2,880 Net operating income and total fixed expenses were reversed. In other words, assume 14. Assume that the amounts of the company's total variable expe 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.) Degree of operating leverage
Required information [The following information applies to the questions displayed below.] Hudson Company reports the following contribution margin income statement. Sales (10,800 units at $280 each) Variable costs (10,800 units at $210 each) Contribution margin Fixed costs Income HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 The marketing manager believes that increasing advertising costs by $174,000 will increase the company's sales volume to 12,200 units. Prepare a contribution margin income statement for the next year assuming the company incurs the additional advertising costs. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales Variable costs Contribution margin Fixed costs Income/Loss $ 0 $ 3,024,000 2,268,000 756,000 567,000 $ 189,000 0
sa
need help with this Question
The accountant for PNW, LLC has prepared a contribution format income statement. Assume that the following information is within the relevant range. Sales (9,000 units) Variable expenses Contribution margin Fixed expenses $540,000 405,000 135,000 130,500 Net operating income $ 4,500 Assuming that the information provided is within the relevant range, the contribution margin ratio is closest to:
! 00 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 $ 90,000 49,500 40,500 33,210 $ 7,290 10. How many units must be sold to achieve a target profit of $24,300? (Round intermediate calculations to 2 decimal places.) Number of units
Required information [The following information applies to the questions displayed below.] Information for Pueblo Company follows: Sales Revenue Less: Total Variable Cost Contribution Margin Product A $ 51,000 $ 11,500 $ 39,500 Target sales Product B $ 68,000 $ 30,150 $ 37,850 Required: The total fixed costs are $30,000. Determine target sales needed to earn a $26,000 target profit. Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
un.3
Stonebraker Corporation has provided the following contribution format income statement. All questions concern situations that are within the relevant range. Sales (9,300 units) Variable expenses Contribution margin Fixed expenses Net operating income $ 306,900 204,600 102,300 77,500 $ 24,800 Required: a. If sales increase to 9,370 units, what would be the estimated increase in net operating income? b. If the variable cost per unit increases by $7, spending on advertising increases by $3,500, and unit sales increase by 20,500 units, what would be the estimated net operating income? c. Estimate how many units must be sold to achieve a target profit of $36,460.
Rahul