Chapter 6, Problem 7F15

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):

Required:

(Answer each question independently and always refer to the original data unless instructed otherwise.)

If the variable cost per unit increase by $1, spending on advertising increase by $1,500, and unit sales increase by 250 units, what would be the net operating income?