Transcribed Image Text
Oslo Company prepared the following contribution format incomestatement based on a sales volume of 1,000 units (the relevantrange of production is 500 units to 1,500 units):Sales$100,000Variableexpenses65,000Contribution margin35,000Fixedexpenses30,100Netoperating income$4,90010a. How many units must be sold to achieve a target profit of$21,000?10b. What is the margin of safety in dollars? What is the marginof safety percentage?10c. What is the degree of operating leverage?10d. Using the degree of operating leverage, what is theestimated percent increase in net operating income of a 5% increasein sales?
Other questions asked by students
Psychology
Basic Math
Accounting