Question

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 $105,000

Variable expense 73,500

Contribution margin 31,500

Fixed expenses 27,720

Net operating income $3,780

If sales decline to 900 units, what would be the net operating income?

Net operating income-

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-

If the variable cost per unit increases by $1, spending on advertising increases by $1,950, and unit sales increase by 290 units, what would be the net operating income?

Net operating income-

Answer 1

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