Required information The following information applies to the questions displaye

Question

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 s 75,000 45,000 30,000 22,800 $ 7,200 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? Net operating income

Explanation / Answer

Q6. Sales (900 units @77) 69300 Less: Variable cost (900*45) 40500 zcontribution margin 28800 Fixed cost 22800 Net operating income 6000 Net operating income: 6000 Q7. Sales (1230 units @75) 92250 Less: variable cost (1230*46) 56580 Contribution margin 35670 Fixed cost (22800+1650) 24450 Net operating income 11220 Net operating income: $11220

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