Oslo company prepared the contribution format income

Assignment Help Financial Accounting

Reference no: EM13955878

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

Q1-What is the contribution margin per unit? (Round your answer to 2 decimal places.)

Q2- What is the contribution margin ratio? Round your percentage answer to 2 decimal places

Q3- What is the variable expense ratio? Round your percentage answer to 2 decimal places

Q4- If sales increase to 1,001 units, what would be the increase in net operating income? (Round your answer to 2 decimal places.)

Q5- If sales decline to 900 units, what would be the net operating income?

Q6- 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?

Q7- If the variable cost per unit increases by $1.50, spending on advertising increases by $2,000, and unit sales increase by 250 units, what would be the net operating income?

Q8- What is the break-even point in unit sales?

Q9- What is the break-even point in dollar sales? (Round intermediate calculations to 4 decimal places. Round your final answer to the nearest dollar amount.)

Q10- How many units must be sold to achieve a target profit of $7,150?

Q11- A. What is the margin of safety in dollars?

Q11-B. What is the margin of safely percentage?

Q12-What is the degree of operating leverage? (Round your answer to 2 decimal places.)

Q13- Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 5% increase in sales?

Q14- 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 $7,700 and the total fixed expenses are $13,500. Under this scenario and assuming that total sales remain the same, what is the degree of operating leverage?

Q15- 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 $7,700 and the total fixed expenses are $13,500. Given this scenario, and assuming that total sales remain the same, calculate the degree of operating leverage. Using the calculated degree of operating leverage, what is the estimated percent increase in net operating income of a 5% increase in sales?

Reference no: EM13955878

Questions Cloud

Translate a program alm to an asp program : Design a documentation for writing such scenarious in SPARC - Extend the framework to allow SPARC programs to be used to specify robot's behavior.

Calculate the kinetic energy of the system : Show that for a hoop of mass M rolling along level ground with a velocity v,the kinetic energy of the hoop is mv2. How is the kinetic energy "divided" between translational kinetic energy and rotational kinetic energy?

Prepare a condensed multiple-step income statement : Prepare a condensed multiple-step income statement. Assume a tax rate of 30% and 100,000 shares of common stock outstanding during 2014.

What is her average speed for the round trip : A certain car is capable of accelerating at a rate of 10.60 m/s2. How long does it take for this car to go from a speed of 55 mi/h to a speed of 55 mi/h to a speed of 60 mi/h?

Oslo company prepared the contribution format income : Oslo Company prepared the contribution format income statement based on a sales volume

What is the total distance she travels : Velocity A is 3.00 units in length and points along the positive x-axis. Vector B is 4.00 units in length and points along the negative y-axis. Use graphical methods to find the magnitude and direction of the vectors(a) A + B and (b) A - B.

Does this suggest that management of great oaks : Does this suggest that management of Great Oaks Furniture has manipulated earnings upward in these years?

Discuss the needed revisions to your essay : Individual Project, you will finalize your essay. You will begin with the draft you completed for your Phase 3 Individual Project. In Phase 4, you were able to discuss the needed revisions to your essay. Now it is time to submit your final draft for ..

Will this choice for m2 set the system in motion : An object of mass 5 kg is acted upon by four forces, each of magnitude 10 N. Which of the following could NOT be the acceleration of the object?

User Account

All Pages