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28 Sep 2019
Oslo Company prepared the following contribution format incomestatement based on a sales volume of 1,000 units (the relevantrange of production is 500 units to 1,500 units):
Sales $ 100,000 Variableexpenses 65,000 Contribution margin 35,000 Fixedexpenses 30,100 Netoperating income $ 4,900
6a. If the selling price increases by $2 per unit and the salesvolume decreases by 100 units, what would be the net operatingincome?
6b. If the variable cost per unit increases by $1, spending onadvertising increases by $1,900, and unit sales increase by 280units, what would be the net operating income?
6c. What is the break-even point in unit sales?
6d. What is the break-even point in dollar sales?
Oslo Company prepared the following contribution format incomestatement based on a sales volume of 1,000 units (the relevantrange of production is 500 units to 1,500 units):
Sales | $ | 100,000 |
Variableexpenses | 65,000 | |
Contribution margin | 35,000 | |
Fixedexpenses | 30,100 | |
Netoperating income | $ | 4,900 |
6a. If the selling price increases by $2 per unit and the salesvolume decreases by 100 units, what would be the net operatingincome?
6b. If the variable cost per unit increases by $1, spending onadvertising increases by $1,900, and unit sales increase by 280units, what would be the net operating income?
6c. What is the break-even point in unit sales?
6d. What is the break-even point in dollar sales?
Bunny GreenfelderLv2
28 Sep 2019