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C С 5 Part 5 of 15 Required information [The following information applies to the questions displayed below.) Oslo Company pr
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Answer #1

NET OPERATING INCOME AT 900 UNITS=2280

WORKINGS

FIRST WE WILL CALCULATE SALES PER UNIT AND VARIABLE COST PER UNIT

SALE PER UNIT=15000/1000=15

V.C. PER UNIT=9000/1000=9

THEN WE WILL PREPARE A STATEMENT OF TO CALCULATE NET OPERATING INCOME

DETAILS AMOUNT
SALES(900*15) 13500
V.C.(900*9) 8100
CONTRIBUTION 5400
FIXED COST 3120
NET OPERATING INCOME 2280

NOTE:-FIXED COST WON'T CHANGE BECAUSE IT DOES NOT VARY WITH THE SALE.IT REMAIN FIXED.

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