9. Break even sales= Total fixed/(selling price-variable cost)
Break even sales= 3120/(15-9)=520 units
Break even in $ sales=520*15= $7,800
11. Margin of safety= Actual sales- Break even point = 15,000-7,800 = 7,200
Margin of safety percentage = Margin of safety / Actual sale = 7,200/15000= 48%
14. Degree of Operating Leverage = contribution margin/ operating income
DOL = 11,880/2,880 = 4.12
15.percentage increase in Net Operation Income:
4.12 = X / 5
X = 20.6
Increase in Net Operating Income is 20.6
Required information The following information applies to the questions displayed below Oslo Company prepared the following...
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): Sales Variable expenses Contribution margin Fixed expenses 15,000 9,000 6, 000 3,120 2,880 Net operating income 2. What is the contribution margin ratio? in ratio Required information The following information applies to the questions displayed below] Oslo Company prepared the following...
! 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) Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 15,000 9,000 6,000 3,120 $ 2,880 7. If the variable cost per unit increases by $1. spending on advertising increases by $1,050, and unit sales increase by 110 units,...
! 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): Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 15,000 9,000 6,000 3,120 $ 2,880 5 6. If the selling price increases by $2 per unit and the sales volume decreases by 100 units, what would be the...
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): Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 15,000 9. eee 6,800 3,120 $ 2,880 13. Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 5% increase in sales?...
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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): Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 65,000 45,500 19,500 14,840 $ 5,460 7. If the variable cost per unit increases by $1, spending on advertising increases by $1,550, and unit sales increase by 210 units, what...
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): Sales Variable expenses Contribution margin Fixed expenses Net operating income $100,000 65,000 35,000 30, 100 $ 4,900 11. What is the margin of safety in dollars? What is the margin of safety percentage? Margin of safety in dollars Margin of safety...
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): Sales Variable expenses Contribution margin Fixed expenses Net operating income $80,000 52,000 28,000 21,840 $ 6,160 11. What is the margin of safety in dollars? What is the margin of safety percentage? Margin of safety in dollars Margin of safety percentage
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