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What would be the net operating income

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Question - 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 $20,000

Variable expenses 12,000

Contribution margin 8,000

Fixed expenses 6,000

Net operating income $2,000

Required - If the variable cost per unit increases by $1, spending on advertising increases by $1,500, and unit sales increase by 250 units, what would be the net operating income?

Reference no: EM133037512

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