Oslo company prepared the following contribution format

Reference no: EM13485287

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	$	21,200
Variable expenses		12,400

Contribution margin		8,800
Fixed expenses		6,952

Net operating income	$	1,848

Required:

If the variable cost per unit increases by $1.40, spending on advertising increases by $1,900, and unit sales increase by 250 units, what would be the net operating income? (Do not round intermediate calculations.)

Reference no: EM13485287

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