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

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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
10a. How many units must be sold to achieve a target profit of$21,000?
10b. What is the margin of safety in dollars? What is the marginof safety percentage?
10c. What is the degree of operating leverage?
10d. Using the degree of operating leverage, what is theestimated percent increase in net operating income of a 5% increasein sales?

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Part10 a Number of units must be sold Target contributioncontribution per unit 5110035 1460 Target contribution Fixed See Answer

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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$4,90010a. How many units must be sold to achieve a target profit of$21,000?10b. What is the margin of safety in dollars? What is the marginof safety percentage?10c. What is the degree of operating leverage?10d. Using the degree of operating leverage, what is theestimated percent increase in net operating income of a 5% increasein sales?


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