Question

Omar Company prepared the following contribution format income statement based on 100,000 units of sales. Sales......... ...$1. What is the contribution margin per unit? 2. What is the contribution margin ratio? 3. What is the variable expense ratio?7. If the variable cost per unit increases by $1, spending on advertising increases by $1,500, and unit sales increase by 25011. What is the margin of safety in dollars? What is the margin of safety percentage? 12. What is the degree of operating lev

0 0
Add a comment Improve this question Transcribed image text
Answer #1

9 given en above Q no. 14 & 15 do not pertain to the given question Infaut only first three questions related to data but stieuen fined enpu upurses Contribution per unit Break point un Cunel) 8) $9,00,000 $30-$18 .75000 unit $ 900 000 $12 a) Break e1) contribution marginpu contribution margin units sold No of $12 $ 12,00,000 1,00,000 2) Contribution margin ratio- Contribu

Add a comment
Know the answer?
Add Answer to:
Omar Company prepared the following contribution format income statement based on 100,000 units of sales. Sales............
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • OSLO COMPANY PREPARED THE FOLLOWING CONTRIBUTION FORMAT INCOME STATEMENT BASED ON SALES VOLUME OF $1,000 UNITS...

    OSLO COMPANY PREPARED THE FOLLOWING CONTRIBUTION FORMAT INCOME STATEMENT BASED ON SALES VOLUME OF $1,000 UNITS ( THE RELEVANT RANGE OF PRODUCTION IS 500 UNITES TO 1500 UNITS.   SALES $20,000 VARIABLE EXPENSES $12,000 CONTRIBUTION MARGIN $8,000 FIXED EXPNSES $6,000 NET OPERATING INCOME $2,000 1. WHAT IS THE CONTRIBUTION MARGIN PER UNIT? 2. WHAT IS THE CONTRIBUTION MARGIN RATIO? 3. WHAT IS THE VARIABLE EXPENSE RATIO? 4. IF SALES INCREASE TO 1,001 UNITS, WHAT WOULD BE THE INCREASE IN NET OPERATING...

  • Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units

     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 to1,500 units): Sales..  $20,000 Variable expenses..  12,000 Contribution margin..  $8,000 Fixed expenses..  6,000 Net operating income..  $2,000 Required: (Answer each question independently and always refer to the original data unless instructed otherwise.) 1. What is the contribution margin per unit? 2. What Is the contribution margin ratio? 3. What is the variable expense ratio? 4. If sales increase to 1,001 units, what would be the increase in net operating income? 5. If...

  • OSLO COMPANY PREPARED THE FOLLOWING CONTRIBUTION FORMAT INCOME STATEMENT BASED ON A SALES VOLUME OF 1,000...

    OSLO COMPANY PREPARED THE FOLLOWING CONTRIBUTION FORMAT INCOME STATEMENT BASED ON A SALES VOLUME OF 1,000 UNITS THE RELEVANT RANGE OF PRODUCTION OF 500 UNITS TO 1500 UNITS): SALES: $20,000 VARIABLE EXPENSES 12,000 CONTRIBUTION MARGIN 8,000 FIXED EXPENSES 6,000 NET OPERATING INCOME 2,000 SHOW ALL WORK 1. IF THE VARIABLE COST PER UNIT INCREASES BY $1, SPENDING ON ADVERTISING INCREASES BY $1,500, AND UNIT SALES INCREASE BY 250 UNITS, WHAT WOULD BE NET OPERATING INCOME? 2. WHAT IS THE BREAK...

  • Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000...

    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 $ 20,000 Variable expenses 13,000 Contribution margin 7,000 Fixed expenses 3,780 Net operating income $ 3,220 7. If the variable cost per unit increases by $1, spending on advertising increases by $1,100, and unit sales increase by 120 units, what would be the net operating income? 8. What is the break-even...

  • examples of transactions-processing systems Accounting 2020 Oslo Company prepared the following contribution format income statement based...

    examples of transactions-processing systems Accounting 2020 Oslo Company prepared the following contribution format income statement based on a les volume of 1,00 Chapter 5 Case units the relevant range of production is 500 units to 1,300 units) 3,000 Variable expenses Contribution margin Fixed expenses Net operating income x contribuita 5300 35035 935 tour gd 1 x 100L : 2402L $ 5,600 = 14,014 8100 Required: 1. What is the contribution margin per unit? (Round your answer to 2 decimal places)...

  • Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000...

    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 $ 25,000 Variable expenses 17,500 Contribution margin 7,500 Fixed expenses 4,200 Net operating income $ 3,300 1. What is the variable expense ratio? 2. What is the contribution margin per unit? (Round your answer to 2 decimal places.) 3. What is the contribution margin ratio? 4. What is the variable expense...

  • Omar Company prepared the following contribution format income statement based on 100,000 units of sales. Sales………………………………………………………………………………………………$3,000,000...

    Omar Company prepared the following contribution format income statement based on 100,000 units of sales. Sales………………………………………………………………………………………………$3,000,000 Variable expenses…………………………………………………………………………….1,800,000 Contribution margin………………………………………………………………………….1,200,000 Fixed expenses……………………………………………………………………………………..900,000 Net operating income………………………………………………………………………… 300,000 Required: Using the information given above answer the questions on page 226 of the text. The following questions 4, 5, 6, 10, & 14 are changed to read as follows: 4. If sales increase by 1,000 units what would be the net operating income? 5. If sales decrease by 1,000 units what would be...

  • Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000...

    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 $ 40,000 Variable expenses 26,000 Contribution margin 14,000 Fixed expenses 8,680 Net operating income $ 5,320 1 Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 5% increase in sales? (Round your intermediate calculations and final answer to 2 decimal places.) 2....

  • oslo company prepared the following contribution format income statement based on a sales volume of 1,000...

    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 $85,000, variable expenses 59,500, contribution margin 25,500, fixed expenses 20,400, net operating income $5,100. what is the degree of operating leverage? ( round answer to 2 decimal places.) using the degree of operating leverage, what is the estimated percent increase in net operating income of a 5% increase in sales? (round...

  • 1.What is the contribution margin per unit? 2.What is the contribution margin ratio? 3.What is the...

    1.What is the contribution margin per unit? 2.What is the contribution margin ratio? 3.What is the variable expense ratio? 4.If sales increase to 1,001 units, what would be the increase in net operating income? 5.If sales decline to 900 units, what would be the net operating income? 6.If the selling price increases by $2.50 per unit and the sales volume decreases by 100 units, what would be the net operating income? 7.If the variable cost per unit increases by $1.50,...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT