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$20,000Variable expenses 13,000Contribution margin 7,000Fixed expenses 3,780Net operating income$3,220 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? Net Operating Income_____

Net operating income is calculated as excess of sales revenue over total cost.

Answered: Oslo Company prepared the following…

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...

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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	$	20,000
Variable expenses		13,000
Contribution margin		7,000
Fixed expenses		3,780
Net operating income	$	3,220

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?

Net Operating Income_____

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