Answer
--Requirement 12
Degree of Operating Leverage = Contribution margin / Net Operating
Income
= $ 28000 / $ 6160
= 4.55
Answer
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 $80,000 52,000 28,000 21,840 $ 6,160 14. Assume that the amounts of the company's total variable expenses and total fixed expenses were reversed. In other words, assume that the total variable...
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 13. Using the degree of operating leverage, what is the estimated percent Increase in net operating Income of a 5% Increase in sales? (Round your...
Required Information The following information applies to the questions displayed below.] Oslo Company prepared the following contribution format 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 5. If sales decline to 900 units, what would be the net operating income? Net operating income
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 2. What is the contribution margin ratio? Contribution margin ratio
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
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 9. What is the break-even point in dollar sales? Break-even point
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 8. What is the break-even point in unit sales? Break-even point units 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 $80,000 52,000 28,000 21,840 $ 6,160 10. How many units must be sold to achieve a target profit of $16,800? Number of 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 $80,000 52,000 28,000 21,840 $ 6,160 Required: 1. What is the contribution margin per unit? (Round your answer to 2 decimal places.) Contribution margin per unit
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 6. If the selling price increases by $2 per unit and the sales volume decreases by 100 units, what would be the net operating income?...