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 $ 21,800Variable expenses 12,600 Contribution margin 9,200 Fixed expenses7,452 Net operating income $ 1,748
5. If sales decline to 900 units, what would be the netoperating income?
6. If the selling price increases by $1.90 per unit and thesales volume decreases by 100 units, what would be the netoperating income?
7. If the variable cost per unit increases by $.90, spending onadvertising increases by $1,400, and unit sales increase by 250units, 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$5,474?
11. 11-a. What is the margin of safety in dollars?
11. 11-b. What is the margin of safety percentage?
12. What is the degree of operating leverage?
13. Using the degree of operating leverage, what is theestimated percent increase in net operating income of a 5% increasein sales? Do not round intermediate calculations. Round yourpercentage answer to 2 decimal places (i.e .1234 should be enteredas 12.34).
14. Assume that the amounts of the companyâs total variableexpenses and total fixed expenses were reversed. In other words,assume that the total variable expenses are $7,452 and the totalfixed expenses are $12,600. Under this scenario and assuming thattotal sales remain the same, what is the degree of operatingleverage?
15. Assume that the amounts of the company's total variableexpenses and total fixed expenses were reversed. In other words,assume that the total variable expenses are $7,452 and the totalfixed expenses are $12,600. Given this scenario, and assuming thattotal sales remain the same, calculate the degree of operatingleverage. Using the calculated degree of operating leverage, whatis the estimated percent increase in net operating income of a 5%increase in sales? Do not round intermediate calculations. Roundyour percentage answer to 2 decimal places (i.e .1234 should beentered as 12.34).
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 $ 21,800Variable expenses 12,600 Contribution margin 9,200 Fixed expenses7,452 Net operating income $ 1,748
5. If sales decline to 900 units, what would be the netoperating income?
6. If the selling price increases by $1.90 per unit and thesales volume decreases by 100 units, what would be the netoperating income?
7. If the variable cost per unit increases by $.90, spending onadvertising increases by $1,400, and unit sales increase by 250units, 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$5,474?
11. 11-a. What is the margin of safety in dollars?
11. 11-b. What is the margin of safety percentage?
12. What is the degree of operating leverage?
13. Using the degree of operating leverage, what is theestimated percent increase in net operating income of a 5% increasein sales? Do not round intermediate calculations. Round yourpercentage answer to 2 decimal places (i.e .1234 should be enteredas 12.34).
14. Assume that the amounts of the companyâs total variableexpenses and total fixed expenses were reversed. In other words,assume that the total variable expenses are $7,452 and the totalfixed expenses are $12,600. Under this scenario and assuming thattotal sales remain the same, what is the degree of operatingleverage?
15. Assume that the amounts of the company's total variableexpenses and total fixed expenses were reversed. In other words,assume that the total variable expenses are $7,452 and the totalfixed expenses are $12,600. Given this scenario, and assuming thattotal sales remain the same, calculate the degree of operatingleverage. Using the calculated degree of operating leverage, whatis the estimated percent increase in net operating income of a 5%increase in sales? Do not round intermediate calculations. Roundyour percentage answer to 2 decimal places (i.e .1234 should beentered as 12.34).
Related questions
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 | $ | 25,700 | |
Variable expenses | 13,900 | ||
Contribution margin | 11,800 | ||
Fixed expenses | 7,788 | ||
Net operating income | $ | 4,012 | |
|
Variable expense ratio- | |||
|
Increase in net operating Income- |
| 5. If sales decline to 900 units, what would be the netoperating income? (Do not round intermediatecalculations.) Net operating Income- |
| 6. If the selling price increases by $1.60 per unit and thesales volume decreases by 100 units, what would be the netoperating income? (Do not round intermediatecalculations.) Net operating Income- |
| 7. If the variable cost per unit increases by $.60, spending onadvertising increases by $1,100, and unit sales increase by 250units, what would be the net operating income? (Do notround intermediate calculations.) Net operating Income- |
| [The following information applies to the questionsdisplayed below.] |
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 | $ | 25,700 | ||||||||||
| Variable expenses | 13,900 | |||||||||||
| Contribution margin | 11,800 | |||||||||||
| Fixed expenses | 7,788 | |||||||||||
| Netoperating income | $ | 4,012 | ||||||||||
|
