Homework Answers
Fixed costs remain constant during the relevant range
Variable cost per unit remains constant
Net Operating Income = Sales – Variable costs – Fixed costs
= (45-32.5)*1170 – 8640-1350
= $4,635
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Required information The following information applies to the questions displayed below.) Income Statement Sales (1,898 units)...
Required information (The following information applies to the questions displayed below.) Income Statement Sales (1,898 units)...
Required information (The following information applies to the questions displayed below.) Income Statement Sales (1,898 units) Variable expenses Contribution margin Fixed expenses Net operating income 45, ose 31.500 13,500 8.640 4,860 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? The new sales volume is within the relevant range. Net operating income Required information (The following information applies to the questions displayed below.) Income...
Required information [The following information applies to the questions displayed below Income Statement Sales (1,000 units)...
Required information [The following information applies to the questions displayed below Income Statement Sales (1,000 units) Variable expenses Contribution margin Fixed expenses $ 45, eee 31,500 13,500 8,640 4, 860 Net operating income $ 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? The new sales volume is within the relevant range Net operating income
Required information [The following information applies to the questions displayed below Income Statement Sales (1,00e units)...
Required information [The following information applies to the questions displayed below Income Statement Sales (1,00e units) Variable expenses Contribution margin Fixed expenses $ 45,000 31,500 13,500 8,640 Net operating income 4,860 10. Assuming the increase is within the relevant range, how many units must be sold to achieve a target profit of $8,100? Number of units
Required information [The following information applies to the questions displayed below) $ Income Statement Sales (1,units)...
Required information [The following information applies to the questions displayed below) $ Income Statement Sales (1,units) Variable expenses Contribution margin Fixed expenses Net operating income 45, eee 31,5ee 13,500 8,640 4.860 13. Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 5% increase in sales? The increase in sales is within the relevant range. (Round your intermediate calculations and final answer to 2 decimal places.) Increase in net operating income
Required information [The following information applies to the questions displayed below. $ Income Statement Sales (1,eee...
Required information [The following information applies to the questions displayed below. $ Income Statement Sales (1,eee units) Variable expenses Contribution margin Fixed expenses Net operating income 45, eee 31,5ee 13.5ee 8.640 $ 4,850 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? The new sales volume is within the relevant range. Not operating income Rou
! Required information [The following information applies to the questions displayed below.) Oslo Company prepared 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 9,000 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...
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 7. If the variable cost per unit increases by $1, spending on advertising increases by $1,700, and unit sales Increase by 240 units, what would...
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 1000 units (the relevant range of production is 500 units to 1,500 units): $ 10,000 5.500 Sales Variable expenses Contribution margin Fixed expenses Net operating income 4,500 2.250 7. If the variable cost per unit increases by $1, spending on advertising increases by $1.000, and unit sales increase by 100 units, what would be...
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 $ 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...
! 15 Required information (The following information applies to the questions displayed below.) Oslo Company prepared...
! 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): Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 35,000 21,000 14,000 8,400 $ 5,600 7. If the variable cost per unit increases by $1, spending on advertising increases by $1,250, and unit sales increase by 150...
Required information (The following information applies to the questions displayed below.) Income Statement Sales (1,898 units) Variable expenses Contribution margin Fixed expenses Net operating income 45, ose 31.500 13,500 8.640 4,860 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? The new sales volume is within the relevant range. Net operating income Required information (The following information applies to the questions displayed below.) Income...
Required information [The following information applies to the questions displayed below Income Statement Sales (1,000 units) Variable expenses Contribution margin Fixed expenses $ 45, eee 31,500 13,500 8,640 4, 860 Net operating income $ 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? The new sales volume is within the relevant range Net operating income
Required information [The following information applies to the questions displayed below Income Statement Sales (1,00e units) Variable expenses Contribution margin Fixed expenses $ 45,000 31,500 13,500 8,640 Net operating income 4,860 10. Assuming the increase is within the relevant range, how many units must be sold to achieve a target profit of $8,100? Number of units
Required information [The following information applies to the questions displayed below) $ Income Statement Sales (1,units) Variable expenses Contribution margin Fixed expenses Net operating income 45, eee 31,5ee 13,500 8,640 4.860 13. Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 5% increase in sales? The increase in sales is within the relevant range. (Round your intermediate calculations and final answer to 2 decimal places.) Increase in net operating income
Required information [The following information applies to the questions displayed below. $ Income Statement Sales (1,eee units) Variable expenses Contribution margin Fixed expenses Net operating income 45, eee 31,5ee 13.5ee 8.640 $ 4,850 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? The new sales volume is within the relevant range. Not operating income Rou
! 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 $80,000 52,000 28,000 21,840 $ 6,160 7. If the variable cost per unit increases by $1, spending on advertising increases by $1,700, and unit sales Increase by 240 units, what would...
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 1000 units (the relevant range of production is 500 units to 1,500 units): $ 10,000 5.500 Sales Variable expenses Contribution margin Fixed expenses Net operating income 4,500 2.250 7. If the variable cost per unit increases by $1, spending on advertising increases by $1.000, and unit sales increase by 100 units, what would be...
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...
! 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): Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 35,000 21,000 14,000 8,400 $ 5,600 7. If the variable cost per unit increases by $1, spending on advertising increases by $1,250, and unit sales increase by 150...
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