Reference no: EM131247535
Olso Company prepared the following contribution format income statement based on a sales volume of 1,000 units ( the relevant range of production is 509 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
1. If the selling price increases by $2.40 per unit and the sales volume decreases by 100 units, what would be the net operating income?
2. If the variable cost per unit by $1.40, spending on advertising increases by $1,900, and units sales by 250 units, what would be the net operating income?
3. What is the break -even point in unit sales?
4. What is the break-even point in dollar sales?
5. How many units must be sold to achieve a target profit of 5,324?
6. What is the margin of safety in dollars? What is the margin of safety percentage?
7. What is the degree of operating leverage?
8. Using the degree of operating leverage, what is the estimate percent increase in net operating income of a 4% increase in sales?
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: Olso Company prepared the following contribution format income statement based on a sales volume of 1,000 units ( the relevant range of production is 509 units to 1,500 units): What is the break -even point in unit sales? What is the break-even point..
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