Oslo Company prepared the following contribution format income statement based o
ID: 2493078 • Letter: O
Question
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):
6. If the slling price increases by $2.30 per unit and the sales volume decreases by 100 units what would be the net operating income?
If the variable cost per unit increases by $1.30, spending on advertising increases by $1,800, and unit sales increase by 250 units, what would be the net operating income?
8. What is the break even point in unit sales?
9. What is the break-even point in dollar sales?
10. How many units must be sold to achieve a target profit of $6784?
11. a.What is the margin of safety in dollars?
11. b. What is the margin of safety in percentage?
12. What is the degree of opreating leverage?
13.Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 4% increase in sales?
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 $7,632 and the total fixed expenses are $13,300. Under this scenario and assuming that total sales remain the same, what is the degree of operating leverage?
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 $7,632 and the total fixed expenses are $13,300. Given this scenario, and assuming that total sales remain the same, calculate the degree of operating leverage. Using the calculated degree of operating leverage, what is the estimated percent increase in net operating income of a 4% increase in sales?
Sales $ 23,900 Variable expenses 13,300 Contribution margin 10,600 Fixed expenses 7,632 Net operating income $ 2,9686. If the slling price increases by $2.30 per unit and the sales volume decreases by 100 units what would be the net operating income?
7.If the variable cost per unit increases by $1.30, spending on advertising increases by $1,800, and unit sales increase by 250 units, what would be the net operating income?
8. What is the break even point in unit sales?
9. What is the break-even point in dollar sales?
10. How many units must be sold to achieve a target profit of $6784?
11. a.What is the margin of safety in dollars?
11. b. What is the margin of safety in percentage?
12. What is the degree of opreating leverage?
13.Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 4% increase in sales?
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 $7,632 and the total fixed expenses are $13,300. Under this scenario and assuming that total sales remain the same, what is the degree of operating leverage?
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 $7,632 and the total fixed expenses are $13,300. Given this scenario, and assuming that total sales remain the same, calculate the degree of operating leverage. Using the calculated degree of operating leverage, what is the estimated percent increase in net operating income of a 4% increase in sales?
Explanation / Answer
Answer: 6
Answer:7
Contribution income statement units 1000 900 Sales 23900 23580 Variable expenses 13300 11970 Contribution margin 10600 11610 Fixed expenses 7632 7632 Net operating income 2968 3978Related Questions
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