Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000...
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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): S 80,000 52,000 28,000 21,840 $6,160 Salee Variable expenses Contribution margin rixed expennea Net operating income 14. Assume that the amounts of the company total variable expenses and total fixed expenses were reversed. In other words, assume that the total variable expenses are $21,840 ảnd the total fixed expenses are $52,000, 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.) (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): Salen Variable expenses Contribution margin Fixed expenses S 80,000 52,000 28,000 21,840 $ 6,160 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 $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 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): S 80,000 52,000 28,000 21,840 $6,160 Salee Variable expenses Contribution margin rixed expennea Net operating income 14. Assume that the amounts of the company total variable expenses and total fixed expenses were reversed. In other words, assume that the total variable expenses are $21,840 ảnd the total fixed expenses are $52,000, 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.) (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): Salen Variable expenses Contribution margin Fixed expenses S 80,000 52,000 28,000 21,840 $ 6,160 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 $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 income
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SOLUTION 14 Contribution margin income statement sales less variable ... View the full answer
Related Book For
Introduction to Managerial Accounting
ISBN: 978-0078025792
7th edition
Authors: Peter Brewer, Ray Garrison, Eric Noreen
Posted Date:
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