Income statement
Sales | 80,000 |
Variable expenses | - 21,840 |
Contribution margin | 58,160 |
Fixed expenses | - 52,000 |
Net operating income | 6,160 |
Degree of operating leverage = Contribution margin/Net operating income
= 58,160/6,160
= 9.44
Increase in operating income = Increase in sales x Degree of operating leverage
= 5 x 9.44
= 47.2%
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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 stateme 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 12. What is the degree of operating leverage? (Round your answer to 2 decimal places.) Degree of operating leverage
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 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...
! 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 13. Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 5% increase in sales?...
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 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 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?...
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