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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 Variable expenses Contribution margin Fixed expenses Net operating income $ 65,000 45,500 19,500 14,040 $ 5,460 4. If sales increase to 1001 units, what would be the increase in net operating income? (Round your answer to 2 decimal places.) Increase in net operating income 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 Variable expenses Contribution margin Fixed expenses Net operating income $ 65,000 45,500 19,500 14,040 $ 5,460 5. If sales decline to 900 units, what would be the net operating income? Net operating income 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 Variable expenses Contribution margin Fixed expenses Net operating income $ 65,000 45,500 19,500 14,040 $ 5,460 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? Net operating income 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 1500 units) Sales $ 65,000 Variable expenses 45. See Contribution margin 19,500 Fixed expenses 14,040 Net operating income $ 5,460 7. If the variable cost per unit increases by $1. spending on advertising increases by $1,550 and unit sales increase by 210 units, what would be the net operating income? Net operating income 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 Variable expenses Contribution margin Fixed expenses Net operating incone $ 65,000 45,500 19,500 14,000 $ 5,460 8 What is the break even point in unit Sales? Break even point units 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 1500 units) Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 65,000 45,500 19,500 14,040 $ 5,460 9. What is the break even point in dollar sales? Break even point 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 1500 units) Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 65,000 45,500 19,500 14,040 $5,460 10. How many units must be sold to achieve a target profit of $11.700? Number of units Oslo Company prepared the following contribution format income statement based on a sales volume of 1000 units (the relevant range of production is 500 units to 1.500 units) Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 65,000 45,500 19,500 14,040 55,460 11 What is the margin of safety in dollars? What is the margin of safety percentage? Margin of safety in dollars Margin of safety percentage 96 Oslo Company prepared the following contribution format income statement based on a sales volume of 1000 units (the relevant range of production is 500 units to 1,500 units) Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 65,000 45,500 19,500 14.040 $ 5,460 12 What is the degree of operating leverage? (Round your answer to 2 decimal places.) Degree of operating leverage ces 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 Variable expenses Contribution margin Fixed expenses Net operating income $ 65,000 45,500 19,500 14,948 $ 5,460 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? (Round your intermediate calculations and final answer to 2 decimal places.) Increase in net operating income % Oslo Company prepared the following contribution format income statement based on a sales volume of 1000 units the relevant range of production is 500 units to 1,500 units) Sales Variable expenses Contribution margin Fixed expenses Net operating income 5 65,800 45,500 19,500 14,640 $5,460 14. 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 $14,040 and the total fixed expenses are $45,500 Under this scenario and assuming that total sales remain the same, what is the degree of operating leverage? (Round your answer to 2 decimal places.) Degree of operating leverage 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 Variable expenses Contribution margin Fixed expenses Net operating income $ 65,000 45,500 19,500 14,040 $ 5,460 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 $14,040 and the total fixed expenses are $15.500. Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 5% increase in unit sales? (Round your intermediate calculations and final answer to 2 decimal places.) Increase in net operating income

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