Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 Units (therelevant range of production is 500 units to 1,500 units):SalesVariable expensesContribution marginFixed expenses$ 15,0009,0006,0003,120Net operating income$2,8804. 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 income

Fixed expenses are those costs which do not fluctuate with changes in production level or sales…

Answered: 4. If sales increase to 1,001 units,…

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 income

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter8: Tactical Decision-making And Relevant Analysis

Section: Chapter Questions

Problem 11MCQ: Garrett Company provided the following information: Common fixed cost totaled 46,000. Garrett...

See similar textbooks

Related questions

Q: Assume that sales revenue in 2022 changed to $755,00 and cost of goods changed to $512,000. Income…

A: Formula: Net income = Total Revenues - Total Expenses

Q: The current ratio of a company is 6:1 and its acid-test ratio is 1:1. If the inventories and prepaid…

A: Current Liabilities: These are liabilities that are due in less than a year and are expected to pay…

Q: During the current year, Sokowski Manufacturing earned income of $446,500 from total sales of…

A: Please find the answer to the above question below:

Q: Akerley Convention Center. had a net income of $33,000 and $138,000 for the current and prior years,…

A: Net Profit Ratio is the percentage of net profit attributable to sales. It shows how much net profit…

Q: During the current year, Sokowski Manufacturing earned income of $786,500 from total sales of…

A: Please find the answer to the above question below:

Q: Mari Mari Berhad has sales of RM29,000, total assets of RM17,500, and total debt of RM6,300. If the…

A: Sales (Revenue)= RM29,000 Total assets= RM17,500 Total debt= RM6,300 Net Profit Margin= 9%

Q: Assuming that sales revenue is increases by 10 percent, calculate the net income of DEF Company,…

A: CVP Income statement in the business shows cost volume profit relationship and shows contribution…

Q: 1. How much will be contributed to profit before taxes by the 1,021st unit sold?

A: Breakeven units means sales revenue at which business is not earning any profit or loss and it is…

Q: In Step 1, operating income. I understand where the 84,000 comes from but where does the 6,000 come…

A: Solution: Return on investment is computed as = Net operating income / Average operating assets…

Q: If current assets amounted to P600,000 and current liabilities amounted to P200,000, what is the…

A: 1. Calculate the current ratio by dividing the current assets which is P600,000 by the current…

Q: Volkswagen AG had sales of €113,808 million, total assets of €167,919 million, and total debt of…

A: Given: Sales =€113808 millionTotal assets =€167919 millionTotal debt =€69380 millionProfit margin…

Q: 1. Current assets is P20,000, current liabilities is P30,000. What is the current ratio? 2.…

A: As posted multiple independent questions we are answering only first question kindly repost the…

Q: 3. Claire Corp.'s sales increase from $500,000 to $1,000,000. What is the percentage change in…

A: Since you have asked multiple questions, we will solve the first question for you . If you want any…

Q: Assuming the following information, what is the (simplified) Internal Growth Ratio (express in…

A: Answer) Calculation of Internal Growth Ratio Internal growth ratio = (Return on Assets X Retention…

Q: what is net income? What is ROA? What is ROE?

A: Net Income: It represents the amount of profits/gains made by the company after the reduction of…

Q: Answer this questions: 1. If the revenue is Php 94,810 and total expenses are Php 80,537, what is…

A: 1) Net income= Revenues - Total expenses =Php 94,810 - Php 80,537=Php 14,273 2) Groos profit =…

Q: Operating Profit?

A: Operating profits are profits that are earned by the company from its major business activities…

Q: Assume the following sales data for a company: Year 2 $562,500 Year 1 $450,000 What is the…

A: SOLUTION- FORMULA= PERCENTAGE INCREASE IN SALES FROM YEAR 1 TO YEAR 2= CHANGE IN SALES FROM YEAR 1…

Q: 6A. During the current year, Sokowski Manufacturing earned income of $489,887 from total sales of…

A: The sales margin is calculated as ratio of income and total sales.

Q: Answer each of the questions in the following unrelated situations. The current ratio of a company…

A: As per authoring guidelines the first question is answered. Please repost the question specifying…

Q: Using absolute cell referencing, which would be the correct formula to multiply th sales rate in B6?…

A: In order to multiple Sales rate in B6 in MS Excel, the formula to be applied will be (=B6*F2)…

Q: Billy's Chrystal Stores Inc , has assets of $5,000,000 and turns over its assets 1.2 times per year.…

A: Return on assets = Profit / Assets

Q: 2. From the following data, calculate (a) Gross profit ratio (b) Net profit ratio. RO 300,000 RO…

A: Gross Profit Ratio: It is the relationship between the gross profit and net sales Net Profit Ratio:…

Q: this information, what is Your Company's Your Company's expected net income when 5,000 units are…

A: Option D Or $26250 Sales (5000 × $20) $100000 Less : Variable Cost (1 - 0.35) × Sales $65000…

Q: If you are told that LSJ Company’s net income (12/31/2023) was $1,000,000 and net income…

A: Net income in current year (12/31/2023) was $1000000 Net income in base year (12/31/2022) was…

Q: 7. If net sales amounted to P200,000, net income before tax is P80,000 and the income tax rate is…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Assume the following sales data for a company: Current year $1,025,000 Preceding year 820,000…

A: The goods and services produced are given to the customers in exchange for money which is termed as…

Q: What is the difference between operating income, net income and other comprehensive income? If a…

A: Operating income is computed after deducting all operating expenses like cost of goods sold, wages…

Q: Answer each of the questions in the following unrelated situations. (a) The current ratio of a…

A: As posted multiple independent questions we are answering only first answer kindly repost the…

Q: ABC Company has sales of $500,000, COGS of $250,000, operating expenses of $200,000, net income of…

A: The times interest earned ratio is calculated as EBIT or operating income divided by Interest…

Q: Assume the following sales data for a company: Current year $770,668 Preceding year 635,551…

A: Horizontal analysis is prepared to calculate the variance from previous year by showing…

Q: During the current year, Sokowski Manufacturing earned income of $270,000 from total sales of…

A: Sales margin Formula = Income earned/Total sales

Q: (b) A company had an average inventory last year of $209,000 and its inventory turnover was 6. If…

A: The current ratio, commonly referred to as the working capital ratio, assesses a company's capacity…

Q: During the current year, Sokowski Manufacturing earned income of $346,500 from total sales of…

A: Please find the answer to the above question below:

Q: Answer each of the questions in the following unrelated situations.(a) The current ratio of a…

A: Hey, since there are multiple questions posted, we will answer the first question. If you want any…

Q: Use the following table to answer the next question. Nominal Income Real Income Year (dollars) CPI…

A: CPI or Consumer Price Index is measure for inflation. Inflation decreases purchasing power. Due to…

Q: ABC Company has sales of $500,000, COGS of $250,000, operating expenses of $200,000, net income of…

A: Formula: Times interest ratio = Operating income / Interest expense

Q: #11 Using table 13, create a pro forma balance sheet using the percentage of sales method. If net…

A: How much did the owners take out from the business: To calculate that, we need to take into…

Q: ABC Company has sales of $500,000, COGS of $250,000, operating expenses of $200,000, net income of…

A: The ratio analysis helps to analyze the financial statements of the business. The times interest…

Q: Oliver Incorporated has a current ratio equal to 1.6 and a quick ratio equal to 1.2. The company has…

A: Turnover: Turnover is a ratio used to measure the efficiency of a company's ability to use its…

Q: 1. If a firm's net income (profits before taxes) is $120,000 and it has total assets of $1.5…

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: If the vertical percentage of operating profit is 60% and vertical percentage of gross sales profit…

A: Operating expenses: These expenses are incurred in the course of regular business operations. These…

Q: During the current year, Sokowski Manufacturing earned income of $396,900 from total sales of…

A: Formula: Sales margin = Earned income / Total sales.

Q: A firm has total sales of $64 million. It has gross profit of $12 million, operating income of $8.5…

A: Total sales is $64million Gross profit is $12million Operating income of $8.5 million Net income of…

Q: Assume the following sales data for a company. Current year $738,274 Preceding year $642,971 What is…

A: Percentage increase in sales = Change in sales / Base year sales

Q: b) by what percentage did net income grow each year? c) for example, revenues (increased or…

A: Net income means the portion of total revenue left after deducting all the expenses. The change in…

Q: Required: 1. Prepare a new income statement if the sales volume increases by 30%, and the selling…

A: Given details Miller company's most recent income statement Sales (18000 units @ $28 per unit) =…

Q: What is the gross profit for the year if the net revenue from by-product is treated as additional…

A: A by-product seems to be a secondary product that is produced inadvertently as a by-product of the…

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
Variable expenses
Contribution margin
Fixed expenses
$ 15,000
9,000
6,000
3,120
Net operating income
$2,880
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 income

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Answer

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Use the following information for Multiple-Choice Questions 2-13 through 2-18: Last year, Barnard Company incurred the following costs: Barnard produced and sold 10,000 units at a price of 31 each. 2-14Refer to the information for Barnard Company above. Conversion cost per unit is a. 7.00. b. 20.00. c. 15.00. d. 5.00. e. 27.60.
Use the following information for Multiple-Choice Questions 2-13 through 2-18: Last year, Barnard Company incurred the following costs: Barnard produced and sold 10,000 units at a price of 31 each. 2-13Refer to the information for Barnard Company above. Prime cost per unit is a. 7.00. b. 20.00. c. 15.00. d. 5.00. e. 27.60.
Olivian Company wants to earn 420,000 in net (after-tax) income next year. Its product is priced at 275 per unit. Product costs include: Variable selling expense is 14 per unit; fixed selling and administrative expense totals 290,000. Olivian has a tax rate of 40 percent. Required: 1. Calculate the before-tax profit needed to achieve an after-tax target of 420,000. 2. Calculate the number of units that will yield operating income calculated in Requirement 1 above. (Round to the nearest unit.) 3. Prepare an income statement for Olivian Company for the coming year based on the number of units computed in Requirement 2. 4. What if Olivian had a 35 percent tax rate? Would the units sold to reach a 420,000 target net income be higher or lower than the units calculated in Requirement 3? Calculate the number of units needed at the new tax rate. (Round dollar amounts to the nearest dollar and unit amounts to the nearest unit.)
West Island distributes a single product. The companys sales and expenses for the month of June are shown. Using the information presented, answer these questions: A. What is the break-even point in units sold and dollar sales? B. What is the total contribution margin at the break-even point? C. If West Island wants to earn a profit of $21,000, how many units would they have to sell? D. Prepare a contribution margin income statement that reflects sales necessary to achieve the target profit.
Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Refer to Exercise 2.21. Last calendar year, Ellerson recognized revenue of 1,312,000 and had selling and administrative expenses of 204,600. Required: 1. What is the cost of goods sold for last year? 2. Prepare an income statement for Ellerson for last year.
Income Statements under Absorption and Variable Costing In the coming year, Kalling Company expects to sell 28,700 units at 32 each. Kallings controller provided the following information for the coming year: Required: 1. Calculate the cost of one unit of product under absorption costing. 2. Calculate the cost of one unit of product under variable costing. 3. Calculate operating income under absorption costing for next year. 4. Calculate operating income under variable costing for next year.
Starling Co. manufactures one product with a selling price of 18 and variable cost of 12. Starlings total annual fixed costs are 38,400. If operating income last year was 28,800, what was the number of units Starling sold? a. 4,800 b. 6,400 c. 5,600 d. 11,200
Use the following information for Multiple- Choice Questions 2-13 through 2-18: Last year, Barnard Company incurred the following costs: Barnard produced and sold 10,000 units at a price of 31 each. 2-15 Refer to the information for Barnard Company on the previous page. The cost of goods sold per unit is a. 7.00. b. 20.00. c. 15.00. d. 5.00. e. 27.60.
The production of a new product required Zion Manufacturing Co. to lease additional plant facilities. Based on studies, the following data have been made available: Estimated annual sales24,000 units Selling expenses are expected to be 5% of sales, and net income is to amount to 2.00 per unit. Required: 1. Calculate the selling price per unit. (Hint: Let X equal the selling price and express selling expense as a percentage of X.) 2. Prepare an absorption costing income statement for the year ended December 31, 2016. 3. Calculate the break-even point expressed in dollars and in units, assuming that administrative expense and factory overhead are all fixed but other costs are fully variable.
The following data were adapted from a recent income statement of Caterpillar Inc. (CAT) for the year ended December 31: Assume that 8,500 million of cost of goods sold and 4,000 million of selling, administrative, and other expenses were fixed costs. Inventories at the beginning and end of the year were as follows: Also, assume that 30% of the beginning and ending inventories were fixed costs. a. Prepare an income statement according to the variable costing concept for Caterpillar Inc. Round numbers to nearest million. b. Explain the difference between the amount of operating income reported under the absorption costing and variable costing concepts. Round numbers to nearest million.
Lotts Company produces and sells one product. The selling price is 10, and the unit variable cost is 6. Total fixed cost is 10,000. Required: 1. Prepare a CVP graph with Units Sold as the horizontal axis and Dollars as the vertical axis. Label the break-even point on the horizontal axis. 2. Prepare CVP graphs for each of the following independent scenarios: (a) Fixed cost increases by 5,000, (b) Unit variable cost increases to 7, (c) Unit selling price increases to 12, and (d) Fixed cost increases by 5,000 and unit variable cost is 7.
Bradshaw Company reported sales of 5,000,000 in 20X1. At the end of the fiscal year (June 30, 20X1), the following quality costs were reported: Required: 1. Prepare a quality cost report. 2. Prepare a graph (pie chart or bar graph) that shows the relative distribution of quality costs, and comment on the distribution. 3. Assuming sales of 5,000,000, by how much would profits increase if quality improves so that quality costs are only 3% of sales?