Reference no: EM132714531

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                       $24,500

Variable expenses        13,500

Contribution margin       11,000

Fixed expenses                7,700

Net operating income            $3,300

Required:

Problem 1: If the variable cost per unit increased by $1.50, spending on advertising increased by $2,000, and unit sales increased by 250 units, what would be the net operating income? (Do not round intermediate calculations.)