Oslo Company prepared the following contribution format incomestatement based on a sales volume of...

60.1K

Verified Solution

Question

Accounting

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 $ 85,000Variable expenses 59,500 Contribution margin 25,500 Fixed expenses20,400 Net operating income $ 5,100 9. What is the break-even pointin dollar sales? How many units must be sold to achieve a targetprofit of $15,300? What is the margin safety in dollars? what isthe margin of safety percentage? Using the degree of operstingleverage, what is the estimated percent increase in net operatingincome of a 5% increase in sales?

Answer & Explanation Solved by verified expert

4.3 Ratings (898 Votes)

All working forms part of the answer Workings Amount Units Per unit Sales 8500000 1000 8500 Variable expenses 5950000 1000 5950 Contribution margin 2550000 1000 2550 Fixed Expenses See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Transcribed Image Text

In: AccountingOslo Company prepared the following contribution format incomestatement based on a sales volume of 1,000...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 $ 85,000Variable expenses 59,500 Contribution margin 25,500 Fixed expenses20,400 Net operating income $ 5,100 9. What is the break-even pointin dollar sales? How many units must be sold to achieve a targetprofit of $15,300? What is the margin safety in dollars? what isthe margin of safety percentage? Using the degree of operstingleverage, what is the estimated percent increase in net operatingincome of a 5% increase in sales?