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ch3 6-15

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) equired: If the selling price increases by $2 per unit and the sales volume decreases by 100 units, what would be the net operating income? lote: Round "Per Unit" calculations to 2 decimal places. Required information [The following information applies to the questions displayed below] Osto 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). equired: If the variable cost per unit increases by $1, spending on advertising increases by $1,700, and unit sales increase by 240 units, what ould be the net operating income? lote: Round "Per Unit" calculations to 2 decimal places. 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): Required: 8. What is the break-even point in unit sales? Note: Round intermediate calculations to 2 decimal places. 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): Required: What is the break-even point in dollar sales? 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): Required: 10. How many units must be sold to achieve a target profit of $16,800 ? Note: Round intermediate calculations to 2 decimal places. 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) Required: 11. What is the margin of safety in dollars? What is the margin of safety percentage? [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) Required: 12. What is the degree of operating leverage? Note: Round your answer to 2 decimal places. 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 (th relevant range of production is 500 units to 1.500 units): Required: 13. Using the degree of operating leverage, what is the estimated percent increase in net operating income that would result 5% increase in unit sales? Note: Round your intermediate calculations and finol answer to 2 decimal ploces. 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) Required: 4. Assume that the amounts of the company's total variable expenses and total fixed expenses were reversed In other words, assu hat the total variable expenses are $21,840 and the total fixed expenses are $52,000. Under this scenario and assuming that total cales remain the same, what is the degree of operating leverage? Note: Round your answer to 2 decimal places. 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) Required: 15. 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 $21,840 and the total fixed expenses are $52,000. Using the degree of operating leverage; what is the estimated percent increase in net operating income of a 5% increase in unit sales? Note: Round your intermediate calculations and final answer to 2 decimal places

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