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 (therelevant range of production is 500 units to 1,500 units):SalesVariable expensesContribution marginFixed expensesNet operating income$ 60,00039,000Net operating income21,00014,700$ 6,300Required:5. If sales decline to 900 units, what would be the net operating income?Note: Round "Per Unit" calculations to 2 decimal places.

The objective of the question is to calculate the net operating income of Oslo Company if the sales…

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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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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 8. What is the break-even point in unit sales? Break-even point units
[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 $ 70,000 Variable expenses 38,500 Contribution margin 31,500 Fixed expenses 23,310 Net operating income $ 8,190 9. What is the break-even point in dollar sales? 10. How many units must be sold to achieve a target profit of $18,900? 11. What is the margin of safety in dollars? What is the margin of safety percentage? 12. What is the degree of operating leverage? (Round your 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 $ 30,000 Variable expenses 16,500 Contribution margin 13,500 Fixed expenses 7,830 Net operating income $ 5,670 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.)
Required information Skip to question [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 $ 25, 700 Variable expenses 13,900 Contribution margin 11, 800 Fixed expenses 7, 788 Operating income $ 4,012 7. If the variable cost per unit increases by $0.60, spending on advertising increases by $1,100, and unit sales increase by 250 units, what would be the operating income? (Do not round intermediate calculations.)
The Mariachi Company prepared the following contribution format income statement based on a sales volume of 1,200 units (the relevant range of production is 500 units to 2,000 units): Sales 26,400 Variable expenses 18,000 Contribution margin 8,400 Fixed expenses 6,200 Net operating income 2,200 If the selling price increases by $2 per unit and the sales volume decreases by 100 units, what would be the net operating income?
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 $ 55,000 33,000 22,000 14,960 $ 7,040 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? (Round "Per Unit" calculations to 2 decimal places.) Net operating income
Cassius Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range. Sales (7,000 units) Variable expenses Contribution margin Fixed expenses Net operating income The number of units that must be sold to achieve a target profit of $31,500 is closest to: 35,000 units 42,000 units 9,400 units $ 210,000 136,500 73,500 67,200 6,300 48,000 units
[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 $ 100,000 Variable expenses 65,000 Contribution margin 35,000 Fixed expenses 30,100 Net operating income $ 4,900 9. What is the break-even point in dollar sales?
Oslo company prepared the following contribution format income statement based on a sales volume of 1000 units. Sales 80,000 Variable expenses 52000 Contribution margin 28000 fixed expenses 21840 net operating income 6160. What is the break-even point in unit sales?

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