Oslo Company prepared the following contribution format income statement based 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 selling price increases by $1.80 per unit and the sales volume decreases by 100 units, what would be the net operating income (Do not round intermediate calculations.)

7. If the variable cost per unit increases by $.80, spending on advertising increases by $1,300, and unit sales increase by 250 units, what would be the net operating income? (Do not round intermediate calculations.)

8.

What is the break-even point in unit sales? (Do not round intermediate calculations.)

9.

What is the break-even point in dollar sales? (Round intermediate calculations to 4 decimal places. Round your answer to the nearest dollar amount.)

10. How many units must be sold to achieve a target profit of $5,546? (Do not round intermediate calculations.)

  Sales $ 22,100       Variable expenses 12,700       Contribution margin 9,400       Fixed expenses 7,708       Net operating income $ 1,692    

Explanation / Answer

Per Unit Units = 900 900 units Sales 22100 22.1 22.1+1.8 21510 Variable Expenses 12700 12.7 11430 Contribution 9400 9.4 10080 Fixed Cost 7708 7708 Net Operating Income 1692 2372

Related Questions

Navigate

• Browse (All)
• Browse O
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.