Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000...

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Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000...

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	$	55,000
Variable expenses		33,000
Contribution margin		22,000
Fixed expenses		14,960
Net operating income	$	7,040

5. If sales decline to 900 units, what would be the net operating income?

business accounting

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Answer 1

Answer #1

5
Sales (900 units)	49500	=900*55
Variable expenses	29700	=900*33
Contribution margin	19800
Fixed expenses	14960
Net operating income	4840

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Answer 2

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