Question

The Foundational 15 (LO6-1, LO6-3, LO6-4, LO6-5, LO6-6, LO6-7, LO6-8] [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 Foundational 6-7 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 be the net operating income?

Answer 1

The answer has been presented in the supporting sheet. All the parts has been solved with detailed explanation and format. For detailed answer refer to the supporting sheet.

A Answer 3 Part 1) 4 The correct answer is $ 9940 5 6 Calculations 7 Contribution Margin Income Statement 9 Sales (1240 (80000/1000)) 10 Variable cost ((52+1) 1240) 99200 65720 11 Contribution Margin 12 Fixed Expenses (21840+1700) 33480 23540 13 Net Operating Income 9940 14