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 (therelevant range of production is 500 units to 1,500 units):SalesVariable expensesContribution marginFixed expensesNet operating income$ 65,00045,50019,50014,040$5,4607. If the variable cost per unit increases by $1, spending on advertising increases by $1,550, and unit sales increase by 210 units, whatwould be the net operating income?Net operating income

Variable costs are those nature of costs which changes with change in activity level of costs.…

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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 Net operating income $ 20,000 12,000 Degree of operating leverage 8,000 6,000 $ 2,000 Foundational 6-12 (Static) 12. What is the degree of operating leverage?
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 Fixed expenses Net operating income $ 40,000 26,000 14,000 8,680 $5,320 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 S 24, 500 Variable expenses 13, 500 Contribution margin 11, 000 Fixed expenses 7, 700 Operating income $ 3, 300 7. If the variable cost per unit increases by $1.50, spending on advertising increases by S2, 000, and unit sales increase by 250 units, what would be the operating income? (Do not round intermediate calculations
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Help Save & Exit Submit Below is the contribution format income statement for a company 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 $ 55,000 33,000 22,000 14,960 $ 7,040 Fixed expenses Net operating income If the variable cost per unit increases by $1, spending on advertising increases by $1,450, and unit sales increase by 190 units, what would be the new net operating income? (All answers are whole numbers 1000 for one thousand. Negative numbers should be added with a minus sign, e.g., -1000 for a decrease or loss of one thousand.) unless specified otherwise. You should NOT include the $ sign or a comma. E.g., you should type Net operating income after the changes %24
! 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 Fixed expenses Net operating income Margin of safety in dollars Margin of safety percentage 11. What is the margin of safety in dollars? What is the margin of safety percentage? $ 20 $ 20,000 12,000 % 8,000 6,000 $ 2,000
Required information [The following information applies to the questions displayed below] Hudson Company reports the following contribution margin income statement. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (9,700 units at $280 each) Variable costs (9,700 units at $210 each) Contribution margin Fixed costs Income 1. Amount of sales 2. Margin of safety 1. Assume Hudson has a target income of $163,000. What amount of sales (in dollars) is needed to produce this target income? 2. If Hudson achieves its target income, what is its margin of safety (in percent)? (Round your answer to 1 decimal place.) $ 2,716,000 2,037,000 679,000 441,000 $ 238,000 %
Required information [The following information applies to the questions displayed below.] Hudson Company reports the following contribution margin income statement. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (11,600 units at $225 each) Variable costs (11,600 units at $180 each) Contribution margin Fixed costs Income $ 2,610,000 2,088,000 522,000 315,000 $ 207,000 1. Assume Hudson has a target income of $150,000. What amount of sales (in dollars) is needed to produce this target income? 2. If Hudson achieves its target income, what is its margin of safety (in percent)? (Round your answer to 1 decimal place.)
[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 $ 100,000 Variable expenses 65,000 Contribution margin 35,000 Fixed expenses 30,100 Net operating income $ 4,900 9. What is the break-even point in dollar 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 Variable expenses Contribution margin Fixed expenses Net operating income $ 20,000 12,000 8,000 6,000 $ 2,000 Foundational 6-14 (Static) 14. Assume that the amounts of the company's total variable expenses and total fixed expenses were reversed. In other words, assume that the total variable expenses are $6,000 and the total fixed expenses are $12,000. Under this scenario and assuming that total sales remain the same, what is the degree of operating leverage? Degree of operating leverage

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