Contribution margin = $15,000 - $3,120 = $11,880
Net operating income remains the same.
Degree of operating leverage = $11,880 / $2,880 = 4.13
% increase in net operating income = Degree of operating leverage X % increase in sales
= 4.13 X 5
= 20.65%
Check my w Required information The Foundational 15 (LO5-1, LO5-3, LO5-4, LO5-5, LO5-6, LO5-7, LO5-8] (The...
Required information The Foundational 15 [LO6-1, LO6-3, LO6-4, L06-5, LO6-6, LO6-7, LO6-8) [The following information applies to the questions displayed below) 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): of 15 o Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 15,000 9,000 6,000 3,120 $ 2,889 Foundational 6-12 12. What is the degree of operating leverage? (Round...
! Required information The Foundational 15 (Algo) (LO5-1, LO5-3, LO5-4, LO5-5, LO5-6, LO5-7, LO5-8] [The following information applies to the questions displayed below.) 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): Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 50,000 27,500 22,500 14,850 $ 7,650 11. What is the margin of safety in dollars? What is the...
The Foundational 15 (LO6-1, LO6-3, L06-4, LO6-5, LO6-6, LO 6-7, L06-8] [The following information applies to the questions displayed below.) 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): 5 Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 15,000 9,000 6,000 3,120 $ 2,880 Foundational 6-6 6. If the selling price increases by $2 per unit and the...
Che Required information The Foundational 15 [LO5-1, LO5-3, LO5-4, L05-5, LO5-6, LO5-7, LO5-8) (The following information applies to the questions displayed below) Oslo Company prepared the following contribution format income statement based on a sales volume of 1000 units (the relevant range of production is 500 units to 1,500 units) Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 10,000 5,500 4,500 2,250 $ 2,250 Foundational 5-6 6. If the selling price increases by $2 per unit and...
15 Required information The Foundational 15 (LO6-1, L06-3, L06-4, LO6-5, LO6-6, LO6-7, LO6-8) The following information applies to the questions displayed below.) 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): Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 25,000 17,500 7,500 4,200 $ 3,300 5 Foundational 6-8 8. What is the break even point in unit sales?...
! Required information The Foundational 15 (Algo) (LO5-1, LO5-3, LO5-4, LO5-5, LO5-6, LO5-7, LO5-8] [The following information applies to the questions displayed below.) 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): Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 50,000 27,500 22,500 14,850 $ 7,650 Required: 1. What is the contribution margin per unit? (Round your answer...
Part 2 of 15 Required information The Foundational 15 [LO5-1, LO5-3, LO5-4, LO5-5, LO5-6, LO5-7, LO5-8] The following information applies to the questions displayed below.] pints 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): eBook Print Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 80,000 52,000 28,000 21,840 $ 6,160 References Foundational 5-2 2. What is the...
! Required information The Foundational 15 (LO6-1, LO6-3, L06-4, LO6-5, L06-6, LO6-7, LO6-8) (The following information applies to the questions displayed below.) 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): Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 25,000 17,500 7,500 4,200 $ 3,300 Foundational 6-8 8. What is the break-even point in unit sales? Break-even point...
Required information The Foundational 15 (LO6-1, LO6-3, LO6-4, LO6-5, LO6-6, LO6-7, LO6-8] [The following information applies to the questions displayed below.) 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): Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 25,000 17,500 7,500 4,200 $ 3,300 Foundational 6-15 15. Assume that the amounts of the company's total variable expenses and...
5 15 of 15 Required information [The following information applies to the questions displayed below) 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): ts Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 15,000 9,000 6,000 3, 120 $ 2,880 Print 15. Assume that the amounts of the company's total variable expenses and total fixed expenses were reversed....