Question

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 be the net operating income? Net operating income

Answer 1

Answer
Sales	$       99,200
Variable cost	$       65,720
Contribution margin	$       33,480
Less - fixed costs	$       23,540
Net operating income	$         9,940

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