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 | $ | 55,000 |
Variable expenses | 33,000 | |
Contribution margin | 22,000 | |
Fixed expenses | 14,960 | |
Net operating income | $ | 7,040 |
7. If the variable cost per unit increases by $1, spending on advertising increases by $1,450, and unit sales increase by 190 units, what would be the net operating income?
Operating income will be $8,580
Working
Before | After | |||||
Per unit | Units | Total | Per unit | Units | Total | |
Sales revenue | $ 55.00 | 1000 | $ 55,000.00 | $ 55.00 | 1190 | $ 65,450.00 |
Variable expense | $ 33.00 | 1000 | $ 33,000.00 | $ 34.00 | 1190 | $ 40,460.00 |
Contribution margin | $ 22.00 | $ 22,000.00 | $ 21.00 | $ 24,990.00 | ||
Fixed expenses | $ 14,960.00 | $ 16,410.00 | ||||
Net Operating income | $ 7,040.00 | $ 8,580.00 |
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 $ 55,000 Variable expenses 33,000 Contribution margin 22,000 Fixed expenses 14,960 Net operating income $ 7,040 5. If sales decline to 900 units, what would be the net operating income?
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 $ 55,000 Variable expenses 33,000 Contribution margin 22,000 Fixed expenses 14,960 Net operating income $ 7,040 11. What is the margin of safety in dollars? What is the margin of safety percentage?
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 $ 55,000 Variable expenses 33,000 Contribution margin 22,000 Fixed expenses 14,960 Net operating income $ 7,040 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 expenses are $14,960 and the total fixed expenses are $33,000....
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 $ 55,000 Variable expenses 33,000 Contribution margin 22,000 Fixed expenses 14,960 Net operating income $ 7,040 15. 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 expenses are $14,960 and the total fixed expenses are $33,000....
Below is the contribution format income statement for a company 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 $ 55,000 33,000 22,000 14,960 $ 7,040 If the variable cost per unit increases by $1, spending on advertising increases by $1,450, and unit sales increase by 200 units, what would be the new net operating income? (All answers are whole...
Below is the contribution format income statement for a company 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 $ 55,000 33,000 22,000 14,960 $ 7,040 If the variable cost per unit increases by $1, spending on advertising increases by $1,450, and unit sales increase by 200 units, what would be the new net operating income? (All answers are whole...
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 $ 20,000 13,000 7,000 3,780 $ 3,220 Foundational 5-5 5. If sales decline to 900 units, what would be the net operating income? Net operating income Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000...
[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 $ 55,000 Variable expenses 33,000 Contribution margin 22,000 Fixed expenses 14,960 Net operating income $ 7,040 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?
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 $25,100 13,700 Contribution margin Fixed expenses 11,400 7,752 Net operating income $ 3,648 Required: If the variable cost per unit increases by $0.80, spending on advertising increases by $1,300, and unit sales increase by 250 units, what would be the net operating income? (Do not round intermediate calculations.) Net...
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 $ 55,000 33,000 22,000 14,960 $ 7,040 Required: 1. What is the contribution margin per unit? (Round your answer to 2 decimal places.) Contribution margin per unit $ 22.00 2. What...