1.Required information
[The following information applies to the questions displayed below.]
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 | $ 70,000 |
|---|---|
| Variable expenses | 38,500 |
| Contribution margin | 31,500 |
| Fixed expenses | 23,310 |
| Net operating income | $ 8,190 |
Required:
1. What is the contribution margin per unit?
Note: Round your answer to 2 decimal places.
2.Required information
[The following information applies to the questions displayed below.]
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 | $ 70,000 |
|---|---|
| Variable expenses | 38,500 |
| Contribution margin | 31,500 |
| Fixed expenses | 23,310 |
| Net operating income | $ 8,190 |
2. What is the contribution margin ratio?
3.Required information
[The following information applies to the questions displayed below.]
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 | $ 70,000 |
|---|---|
| Variable expenses | 38,500 |
| Contribution margin | 31,500 |
| Fixed expenses | 23,310 |
| Net operating income | $ 8,190 |
3. What is the variable expense ratio?
4.Required information
[The following information applies to the questions displayed below.]
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 | $ 70,000 |
|---|---|
| Variable expenses | 38,500 |
| Contribution margin | 31,500 |
| Fixed expenses | 23,310 |
| Net operating income | $ 8,190 |
4. If sales increase to 1,001 units, what would be the increase in net operating income?
Note: Round your answer to 2 decimal places.
5.Required information
[The following information applies to the questions displayed below.]
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 | $ 70,000 |
|---|---|
| Variable expenses | 38,500 |
| Contribution margin | 31,500 |
| Fixed expenses | 23,310 |
| Net operating income | $ 8,190 |
5. If sales decline to 900 units, what would be the net operating income?
Note: Round “Per Unit” calculations to 2 decimal places.
6.Required information
[The following information applies to the questions displayed below.]
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 | $ 70,000 |
|---|---|
| Variable expenses | 38,500 |
| Contribution margin | 31,500 |
| Fixed expenses | 23,310 |
| Net operating income | $ 8,190 |
6. If the selling price increases by $2 per unit and the sales volume decreases by 100 units, what would be the net operating income?
Note: Round “Per Unit” calculations to 2 decimal places.
7.Required information
[The following information applies to the questions displayed below.]
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 | $ 70,000 |
|---|---|
| Variable expenses | 38,500 |
| Contribution margin | 31,500 |
| Fixed expenses | 23,310 |
| Net operating income | $ 8,190 |
7. If the variable cost per unit increases by $1, spending on advertising increases by $1,600, and unit sales increase by 220 units, what would be the net operating income?
Note: Round “Per Unit” calculations to 2 decimal places.
8. Required information
[The following information applies to the questions displayed below.]
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 | $ 70,000 |
|---|---|
| Variable expenses | 38,500 |
| Contribution margin | 31,500 |
| Fixed expenses | 23,310 |
| Net operating income | $ 8,190 |
8. What is the break-even point in unit sales?
Note: Round intermediate calculations to 2 decimal places.
9. Required information
[The following information applies to the questions displayed below.]
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 | $ 70,000 |
|---|---|
| Variable expenses | 38,500 |
| Contribution margin | 31,500 |
| Fixed expenses | 23,310 |
| Net operating income | $ 8,190 |
9. What is the break-even point in dollar sales?
10. Required information
[The following information applies to the questions displayed below.]
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 | $ 70,000 |
|---|---|
| Variable expenses | 38,500 |
| Contribution margin | 31,500 |
| Fixed expenses | 23,310 |
| Net operating income | $ 8,190 |
10. How many units must be sold to achieve a target profit of $18,900?
Note: Round intermediate calculations to 2 decimal places.
11. Required information
[The following information applies to the questions displayed below.]
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 | $ 70,000 |
|---|---|
| Variable expenses | 38,500 |
| Contribution margin | 31,500 |
| Fixed expenses | 23,310 |
| Net operating income | $ 8,190 |
11. What is the margin of safety in dollars? What is the margin of safety percentage?
12. Required information
[The following information applies to the questions displayed below.]
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 | $ 70,000 |
|---|---|
| Variable expenses | 38,500 |
| Contribution margin | 31,500 |
| Fixed expenses | 23,310 |
| Net operating income | $ 8,190 |
12. What is the degree of operating leverage?
Note: Round your answer to 2 decimal places.
13. Required information
[The following information applies to the questions displayed below.]
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 | $ 70,000 |
|---|---|
| Variable expenses | 38,500 |
| Contribution margin | 31,500 |
| Fixed expenses | 23,310 |
| Net operating income | $ 8,190 |
13. Using the degree of operating leverage, what is the estimated percent increase in net operating income that would result from a 5% increase in unit sales?
Note: Round your intermediate calculations and final answer to 2 decimal places.
14. Required information
[The following information applies to the questions displayed below.]
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 | $ 70,000 |
|---|---|
| Variable expenses | 38,500 |
| Contribution margin | 31,500 |
| Fixed expenses | 23,310 |
| Net operating income | $ 8,190 |
14. Assume the amounts of the company’s total variable expenses and total fixed expenses were reversed. In other words, assume the total variable expenses are $23,310 and the total fixed expenses are $38,500. Under this scenario and assuming total sales remain the same, what is the degree of operating leverage?
Note: Round your answer to 2 decimal places.
15. Required information
[The following information applies to the questions displayed below.]
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 | $ 70,000 |
|---|---|
| Variable expenses | 38,500 |
| Contribution margin | 31,500 |
| Fixed expenses | 23,310 |
| Net operating income | $ 8,190 |
15. Assume the amounts of the company’s total variable expenses and total fixed expenses were reversed. In other words, assume the total variable expenses are $23,310 and the total fixed expenses are $38,500. Using the degree of operating leverage, what is the estimated percent increase in net operating income that would result from a 5% increase in unit sales?
Note: Round your intermediate calculations and final answer to 2 decimal places.
