Oslo Company prepared the following contribution format income statement based o
ID: 2493145 • 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):
What is the contribution margin per unit? (Round your answer to 2 decimal places.)
What is the contribution margin ratio?
What is the variable expense ratio?
If sales increase to 1,001 units, what would be the increase in net operating income?
If sales decline to 900 units, what would be the net operating income?
If the selling price increases by $2.40 per unit and the sales volume decreases by 100 units, what would be the net operating income? (Do not round intermediate calculations.)
If the variable cost per unit increases by $1.40, spending on advertising increases by $1,900, and unit sales increase by 250 units, what would be the net operating income? (Do not round intermediate calculations.)
What is the break-even point in dollar sales? (Round intermediate calculations to 4 decimal places. Round your final answer to the nearest dollar amount.)
How many units must be sold to achieve a target profit of $5,324? (Do not round intermediate calculations.)
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 $6,952 and the total fixed expenses are $12,400. 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.)
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 $6,952 and the total fixed expenses are $12,400. 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? Do not round intermediate calculations. Round your percentage 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):
Explanation / Answer
Answer:1 Contribution margin per unit=Selling price-Variable cost
=21.2-12.4
=8.8 per unit
Contribution margin ratio=(CM /Sales)*100
=(8.8/21.2)*100=41.51%
variable expense ratio=(Variable cost/sales)*100
=(12.4/21.2)*100=58.49%
Answer:2
Answer:
Answer:
Units 1000 1001 Increase in net operating income Sales 21200 21221.2 Variable expenses 12400 12412.4 Contribution margin 8800 8808.8 Fixed expenses 6952 6952 Net operating income 1848 1856.8 8.8Related Questions
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