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 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? 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 $ 20,000 Variable expenses 13,000 Contribution margin 7,000 Fixed expenses 3,780 Net operating income $ 3,220 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? Net Operating Income_____
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 | $ | 20,000 |
| Variable expenses | 13,000 | |
| Contribution margin | 7,000 | |
| Fixed expenses | 3,780 | |
| Net operating income | $ | 3,220 |
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?
Net Operating Income_____
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