Question: If the variable cost per unit increases by $1, spending on advertising increases by $ 1,500, and unit sales increase by 250 units, what would

If the variable cost per unit increases by $1, spending on advertising increases by $ 1,500, and unit sales increase by 250 units, what would be the 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 ... Variable expenses. Contribution margin. Fixed expenses Operating income .. $20,000

Sales ... Variable expenses. Contribution margin. Fixed expenses Operating income .. $20,000 12,000 8,000 6,000 $ 2,000

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