Question

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 $ 25,000 Variable expenses 17,500 Contribution margin 7,500 Fixed expenses 4,200 Net operating income $ 3,300 7. If the variable cost per unit increases by $1, spending on advertising increases by $1,150, and unit sales increase by 130 units, what would be the net operating income

Answer 1

See

Step-by-step explanation:

Selling price = $25,000/1,000 = $25

Variable cost = $17,500/1,000 = $17.5

1,001 units

Contribution margin income statement

Sales ($25,000 + $25)

$25,025

Less variable expenses