Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000...

50.1K

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 $ 100,000
Variableexpenses 65,000
Contribution margin 35,000
Fixedexpenses 30,100
Netoperating income $ 4,900
6a. If the selling price increases by $2 per unit and the salesvolume decreases by 100 units, what would be the net operatingincome?
6b. If the variable cost per unit increases by $1, spending onadvertising increases by $1,900, and unit sales increase by 280units, what would be the net operating income?
6c. What is the break-even point in unit sales?
6d. What is the break-even point in dollar sales?

Answer & Explanation Solved by verified expert

4.1 Ratings (778 Votes)

Sales 100000 Variable Expenses 65000 Number of units sold 1000 Selling Price per unit Sales Number of units sold Selling Price per unit 100000 1000 Selling Price per unit 100 Variable Costs per unit Variable Expenses Number of units sold Variable Costs per unit 65000 1000 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

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$4,9006a. If the selling price increases by $2 per unit and the salesvolume decreases by 100 units, what would be the net operatingincome?6b. If the variable cost per unit increases by $1, spending onadvertising increases by $1,900, and unit sales increase by 280units, what would be the net operating income?6c. What is the break-even point in unit sales?6d. What is the break-even point in dollar sales?


Sales	$	100,000
Variableexpenses		65,000
Contribution margin		35,000
Fixedexpenses		30,100
Netoperating income	$	4,900