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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	$	90,000
Variable expenses		49,500
Contribution margin		40,500
Fixed expenses		33,210
Net operating income	$	7,290

7. If the variable cost per unit increases by $1, spending on advertising increases by $1,800, and unit sales increase by 260 units, what would be the net operating income?

Answer 1