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) $ 10,000 5,500 4,500 2,250 Sales Variable expenses Contribution margin Fixed expenses Net operating income 2,250 Required: 1. What is the contribution margin per unit? (Round your answer to 2 decimal places.) Contribution margin per unit
Q: Required information [The following information applies to the questions displayed below.] Oslo…
A: Variable costs: These are the costs that proportionately change with the changes in the activity…
Q: Required information [The following information applies to the questions displayed below] Oslo…
A: A low DOL represents company’s variable costs are larger than its fixes cost and a high DOL…
Q: Required nforma [The following information applies to the questions displayed below.] Oslo Company…
A: Degree of operating leverage = Contribution / Operating income
Q: Ehrlich Enterprises prepared the following contribution format income statement based on a sales…
A: As the question has more than 3 sub-parts, the first 3 subparts are answered as per guidelines. If…
Q: Giannini Incorporated, which produces and sells a single product, has provided the following…
A: Sales price per unit = Sales / no. of units = $295000/5000 units = $59 per unit Variable expenses…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: Contribution is the amount of earnings left after deducting all direct costs from the revenue from…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: The operating leverage indicates a level at which the business entity can increase its income by…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: Contribution margin ratio = Contribution margin / sales = 8000/12000 = 66.67%
Q: 5. Oslo Company prepared the following contribution format income statement based on a sales volume…
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: Required information [The following information applies to the questions displayed below.] Oslo…
A: Operating income: Income statement reports revenues and expenses from business operations, and the…
Q: Required information [The following information applies to the questions displayed below] Oslo…
A: Break-Even Point: It is the point of sales at which entity neither earns a profit nor suffers a…
Q: Cabrera Enterprises, a company that produces and sells a single product has provided its…
A: Solution: Contribution margin per unit = Contribution margin / Nos of units = $813,750 / 52500 =…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: Cost accounting is one of the branches of accounting. Under this branch, all types of costs and…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: The change in operating income owing to a change in sales is measured by the degree of operating…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: Formula: Degree of operating leverage = Contribution margin / Net operating income.
Q: Required information [The following information applies to the questions displayed below] Oslo…
A: Break even point is computed by dividing the fixed cost by contribution per unit. Fixed cost=$2250…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: Contribution margin per unit is the difference between selling price per unit and variable cost per…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: >Degree of Operating Leverage measure how much the net operating income is sensitive to the…
Q: Required information [The following information applies to the questions displayed below] Oslo…
A: The contribution margin income statement is prepared by deducting the amount of variable expenses…
Q: Sorin Inc., a company that produces and sells a single product, has provided its contribution format…
A: Contribution margin per unit = Total Contribution margin / no. of units sold = $46872/3100 units =…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: Contribution margin: Difference between the sales and the variable costs is called contribution…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: Solution: new contribution margin = sales - variable costs = 20000 - 6000 = 14,000 net operating…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: Degree of operating leverage = Total contribution margin / Net Operating income
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: Contribution margin ratio is the difference between company's sales and variable cost, expressed as…
Q: Required information [The following information applies to the questions displayed below.] Oslo…
A: Cost-volume profit analysis is a tool that helps in decision making by establishing a relationship…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: Formula: Degree of operating leverage = Contribution margin / Net operating income.
Q: slo Company prepared the following contribution format income statement based on a sales volume of…
A: Variable Cost - The total cost of production of a good comprises of the total fixed cost of…
Q: Required information [The following information applies to the questions displayed below.] Oslo…
A: Contribution: The term contribution or contribution margin in costing is the sales less variable…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: Degree of operating leverage = Contribution margin / Net operating income = $35000/4900 = 7.14
Q: Required information [The following information applies to the questions displayed below.] Oslo…
A: Cost-volume profit analysis is a tool that helps in decision making by establishing a relationship…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: The question is related to Marginal Costing. The Contribution Margin is calculated with the help of…
Q: Wight Corporation has provided its contribution format income statement for June. The company…
A: The question is based on the concept of Cost Accounting.
Q: Required information [The following information applies to the questions displayed below.] Oslo…
A: Break-even point is that point at which a company is making no profit no loss. In other words at…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: Cost volume profit analysis is the technique used by the management for decision-making. The methods…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: Total Contribution margin = $8,000 Sales volume = 1,000 units
Q: ! Required information [The following information applies to the questions displayed below] Oslo…
A: Cost-volume profit analysis is a tool that helps in decision making by establishing a relationship…
Q: Required information [The following information applies to the questions displayed below] Oslo…
A: Working notes:
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: Degree of operating leverage (DOL): DOL reflects the variable and fixed cost relationship of an…
Q: unit$25$150Variable expenses per unit$15$35Number of units sold annually20,0005,000Fixed expenses…
A: Sales mix is the proportion in which different products are sold by a company.
Q: Required information [The following information applies to the questions displayed below.] Oslo…
A: Contribution - fixed cost =profit
Q: Cassius Corporation has provided the following contribution format income statement. Assume that the…
A: Contribution Margin: Contribution margin is the excess of selling price over the variable costs of a…
Q: [The following information applies to the questions displayed below.] Oslo Company prepared the…
A: Contribution margin is the difference between the sales revenue and variable cost and in other words…
Q: Required information [The following information applies to the questions displayed below] Oslo…
A: Cost-volume profit analysis is a tool that helps in decision making by establishing a relationship…
Q: Required information [The following information applies to the questions displayed below.] Oslo…
A: Operating leverage: Operating leverage refers to the measurement of the degree of the variable and…
Q: Rovinsky Corporation, a company that produces and sells a single product, has provided its…
A: Net Income of the business will be calculated by deducting fixed costs of business from contribution…
Q: Required information [The following information applies to the questions displayed below.] Oslo…
A:
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: Degree of operating leverage = Contribution margin/Net operating income
Q: Ehrlich Enterprises prepared the following contribution format income statement based on a sales…
A: As the question has more than 3 sub-parts, the first 3 subparts are answered as per guidelines. If…
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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): $ 10,000 5,500 4,500 2,250 Sales Variable expenses Contribution margin Fixed expenses Net operating income 2,250 2. What is the contribution margin ratio? Contribution margin ratioRequired 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 $ 10,000 5,500 Variable expenses Contribution margin Fixed expenses 4,500 2,250 Net operating income $4 2,250 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 incomeRequired 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 $ 80,000 52,000 28,000 21,840 $ 6,160 Required: 4. If sales increase to 1,001 units, what would be the increase in net operating income? Note: Round your answer to 2 decimal places. Increase in net operating income
- 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 $ 15,000 9,000 6,000 3,120 $ 2,880 Net operating income and total fixed expenses were reversed. In other words, assume 14. Assume that the amounts of the company's total variable expe that the total variable expenses are $3,120 and the total fixed expenses are $9,000. Under this scenario and assuming that total sales remain the same, what is the degree of operating leverage? (Round your answer to 2 decimal places.) Degree of operating leverageA merchandising company has provided the following contribution format incomestatement:Sales (10,000 units) $ 700,000Variable expenses 350,000Contribution margin 350,000Fixed expenses 85,000Net operating income $ 265,000(a) What is the total contribution margin? (b) What is the unit contribution margin? Show your calculations. **Pls help me in clear soultion with accurate answer pls thanksRequired 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 Operating income $ 21, 200 12,400 8,800 6,952 $ 1,848 10. How many units must be sold to achieve a target profit of $5,324? (Do not round intermediate calculations.) Number of units
- The accountant for PNW, LLC has prepared a contribution format income statement. Assume that the following information is within the relevant range. Sales (9,000 units) Variable expenses Contribution margin Fixed expenses $540,000 405,000 135,000 130,500 Net operating income $ 4,500 Assuming that the information provided is within the relevant range, the contribution margin ratio is closest to:5. what is the break even point in dollar sales? 6. what is the break even point in unit sales? 7. if the variable cost per unit increases by $1, spending on advertising increases by$1400 and unit sales increase by 180 units, what would be the net operating income?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 $ 15,000 9,000 6,000 3,120 $ 2,880 Net operating income reversed. In other words, 15. Assume that the amounts of the company's total variable expenses and total fixed expenses assume that the total variable expenses are $3,120 and the total fixed expenses are $9,000. Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 5% increase in unit sales? (Round your intermediate calculations and final answer to 2 decimal places.) Increase in net operating income
- 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): $ 10,000 5,500 4,500 2,250 $ 2,250 Sales Variable expenses Contribution margin Fixed expenses Net operating income 15. 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 $2,250 and the total fixed expenses are $5,500. Given this scenario and assuming that total sales remain the same. Using the degree of calculated operating leverage, what is the estimated percent increase in net operating income of a 5% increase in sales? (Round your intermediate calculations and final answer to 2 decimal places.) Increase in net operating incomeRequired 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: $ 80,000 52,000 28,000 21,848 $ 6,160 15. 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 $21,840 and the total fixed expenses are $52,000. Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 5% increase in unit sales? (Round your intermediate calculations and final answer to 2 decimal places.) Increase in net operating incomeRequired 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 $ 10,000 Variable expenses Contribution margin Fixed expenses 5,500 4,500 2,250 $4 Net operating income 2,250 3. What is the variable expense ratio? Variable expense ratio