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 $ 20,000 Variable expenses 12,000 Contribution margin 8,000 Fixed expenses 6,000 Net operating income $ 2,000 Required: What is the break-even point in sales dollars?

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 $ 20,000 Variable expenses 12,000 Contribution margin 8,000 Fixed expenses 6,000 Net operating income $ 2,000 Required: What is the break-even point in sales dollars?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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 Variable expenses Contribution margin Fixed expenses $ 15,000 9,000 6,000 3,120 Net operating income $2,880 4. If sales increase to 1,001 units, what would be the increase in net operating income? (Round your answer to 2 decimal places.) Increase in net operating income
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 Variable expenses Contribution margin Fixed expenses $15,000 9,000 6,000 3,120 $ 2,880 Net operating income Required: 1. What is the contribution margin per unit? (Round your answer to 2 decimal places.) Contribution margin per unit
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 $ 15,000 9,000 Variable expenses Contribution margin Fixed expenses 6,000 3,120 Net operating income $2,880 9. What is the break-even point in dollar sales? Break-even point
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 20,000 Variable expenses 12,000 Contribution margin 8,000 Fixed expenses 6,000 Net operating income $2,000 Required: (Answer each question independently and always refer to the original data unless instructed otherwise) 1. What is the contribution margin per unit? 2. What is the contribution margin ratio? 3. What is the variable expense ratio? 4. If sales increase to 1,001 units, what would be the increase in net operating income? 5. If sales decline to 900 units, what would be the net operating income? 6. If the selling price increases by $2 per unit and the sales volume decreases by 100 units, what would be the net operating income? 7. What is the break-even point in unit sales?
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 $ 20,000 Variable expenses 13,000 Contribution margin 7,000 Fixed expenses 3,780 Net operating income $ 3,220 Questions: A) If sales increase to 1,001 units, what would be the increase in net operating income? (Round your answer to 2 decimal places.) B) If sales decline to 900 units, what would be the net operating income? C) If the selling price increases by $2 per unit and the sales volume decreases by 100 units, what would be the net operating income? (SAME DATA AS ATTACHED PICS- SUBMISSION BOX WOULDN'T ALLOW FOR MORE THAN 2 ATTACHMENTS)
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 $ 20,000 Variable expenses 13,000 Contribution margin 7,000 Fixed expenses 3,780 Net operating income $ 3,220 Questions: A) How many units must be sold to achieve a target profit of $4,200? B) What is the margin of safety in dollars? What is the margin of safety percentage? C) What is the degree of operating leverage? (Round your answer to 2 decimal places.)
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 Variable expenses Contribution margin Fixed expenses $ 15,000 9,000 6,000 3,120 $ 2,880 Net operating income 8. What is the break-even point in unit sales? Break-even point units
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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 Variable expenses Contribution margin Fixed expenses $ 15,000 9,000 6,000 3,120 Net operating income $ 2,880 nces 8. What is the break-even point in unit sales? Break-even point units
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Required information [The following information applies to the questions displayed below.] 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 Variable expenses Contribution margin $ 15,000 9,000 6,000 3,120 Net operating income $ 2,880 Fixed expenses 9. What is the break-even point in dollar sales? Break-even point
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 $ 20,000 Variable expenses 12,000 Contribution margin 8,000 Fixed expenses 6,000 Net operating income $ 2,000 11. What is the margin of safety in dollars? What is the margin of safety percentage?