Percentage change in net operating income = Degreeof operating leverage× Percentage change in sales
Degree of operating leverage = Contribution margin / Net Operating Income =11800/4012
Percentage change in net operating income=11800/4012*4% =11.74%
13. Using the degree of operating leverage, what is the estimated percent increase in net operating...
4. If sales increase to 1,001 units, what would be the increase in net operating income? (Round your answer to 2 decimal places. Increase in net operating income Required Information The following information applies to the questions displayed below! References eBook & Resources 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 1500 Worksheet units Learning Objective: 03-03 U margin ratio (CM ratio)...
6. If the selling price increases by 51.50 per unit and the sales volume decreases by 100 is what would be the net operating Income (Deerd intermediate calculations Required Information The following formation to the we b References eBook & Resources Oslo Company prepared the following contribution to a les volume of 1,000 units the relevantage of UNIS com m ent based on con 500 1,500 Worksheet Leaming Objective: 03-03 Use the contribution margin ratio (CM ratio) to compute changes...
7. If the variable cost per unit increases by 5.60, spending on advertising increases by 51 100, and unit sales increase by 250 units, what would be the net operating income? (Do not found inte Not operating income References Book & Resources Required Information Worksheet Learning Objective 03-03 Use the contribution margin ratio (CM ratio) to compute changes in contribution margin and net operating income resulting from changes in sales volume The following f an s to the questions bevo...
Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 5% increase in sales? (Round your intermediate calculations and final answer to 2 decimal places.) 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 expenses are $30,100 and the total fixed expenses are $65,000. Under this scenario and assuming that total sales remain the same, what is...
10. How many units must be sold to achieve a target profit of $7,906? (Do not round Intermediate calculations.) Number of units Required Information References eBook & Resources The following information applies to the questions displayed below.) Worksheet Leaming Objective: 03-03 USE contribution margin ratio (CM compute changes in contributi margin and net operating inco resulting from changes in sale volume. Oslo Company prepared the following contribution format income stat a sales volume of 1,000 units (the relevant range of...
11-a. What is the margin of safety in dollars? (Do not round Intermediate calculations.) Margin olley 11-5. What is the margin of safety percentage? (Round your final answers to the nearest whole percentage (1., 12 should be entered as 12).) Margin of safety % Required Information The following information applies to the questions displayed below! References eBook & Resources Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of...
13.What is the degree of operating leverage? 14.Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 5% increase in sales? 15.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 expenses are $8,400 and the total fixed expenses are $21,000. Under this scenario and assuming that total sales remain the same, what is the degree of operating...
13.What is the degree of operating leverage? 14.Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 5% increase in sales? 15.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 expenses are $8,400 and the total fixed expenses are $21,000. Under this scenario and assuming that total sales remain the same, what is the degree of operating...
9. What is the break-even point in dollar sales? (R Cound Intermediate calculations to 4 decimal places. Round your answer to the nearest dollar amount.) Break-even point $ 170 Required Information # X The following information applies to the questions displayed below! References eBook & Resources 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 Worksheet Leaming Objective: 03-03 USE contribution...
14. Assume that the amounts of the company's total variable expenses and total found expenses were reversed in the words that the variable Under this scenario and assuming that total sales remain the same, what is the degree of operating leverage Round your answer to decimal places s and the fede r Required Information The rows 10 medew References eBook & Resources on ONO Conny prepared the following coton format income of 1000 units relevant range of productions 500 units...