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 $ 45,000 Variable expenses 31,500 Contribution margin 13,500 Fixed expenses 8,640 Net operating income $ 4,860.
1. If sales increase to 1,001 units, what would be the increase in net operating income?
2. If sales decline to 900 units, what would be the net operating income?
3. If the selling price increases by $2 per unit and the sales volume decreases by 100 units, what would be the net operating income?
4. If the variable cost per unit increases by $1, spending on advertising increases by $1,350, and unit sales increase by 170 units, what would be the net operating income?
5.What is the break-even point in dollar sales?
