6. If the selling price increases by $2 per unit and the sales volume decreases by 100 units, what would be the net operating income? (Round "Per Unit" calculations to 2 decimal places.)

Managerial Accounting: The Cornerstone of Business Decision-Making
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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...
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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):
Sales
Variable expenses
Contribution margin
Fixed expenses
Net operating income.
$ 100,000
65,000
35,000
30,100
$ 4,900
6. If the selling price increases by $2 per unit and the sales volume decreases by 100 units, what would be the net operating income?
(Round "Per Unit" calculations to 2 decimal places.)
Net operating income
Transcribed Image Text: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 Net operating income. $ 100,000 65,000 35,000 30,100 $ 4,900 6. If the selling price increases by $2 per unit and the sales volume decreases by 100 units, what would be the net operating income? (Round "Per Unit" calculations to 2 decimal places.) 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):
Sales
Variable expenses
Contribution margin
Fixed expenses
Net operating income
$ 100,000
65,000
35,000
30, 100
$ 4,900
7. If the variable cost per unit increases by $1, spending on advertising increases by $1,900, and unit sales increase by 280 units, what
would be the net operating income? (Round "Per Unit" calculations to 2 decimal places.)
Net operating income
Transcribed Image Text: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 Net operating income $ 100,000 65,000 35,000 30, 100 $ 4,900 7. If the variable cost per unit increases by $1, spending on advertising increases by $1,900, and unit sales increase by 280 units, what would be the net operating income? (Round "Per Unit" calculations to 2 decimal places.) Net operating income
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