4. If sales increase to 1,001 units, what would be the increase in net operating income?…
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Question “4. If sales increase to 1,001 units, what would be the increase in net operating income?…”
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 Required Information The following information applies to the questions displayed below! References eBook & Resources 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 1500 Worksheet units Learning Objective: 03-03 U margin ratio (CM ratio) to co contribution margin and net resulting from changes in sa $25,700 0.900 Difficulty: 2 Medium Learning Objective: 03-04 S net operating income of cha costs, fixed costs, selling pri Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 4,012 Leaming Objective: 03-05 D even point Learning Objective: 03-01 Explain how changes in activity affect contribution margin and net operating income.
Answer
Increase in net operating income = $11.8
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Increase 4) If sales rise to 1,001 units then net operating income would be sales@ 1001 units. Particulars sales (1,001 x $25.7] 8.25, 725.7 less: Variable expenses. (13, 913.9) C1,001 % $13.9). Contribution margin. $ 11.812 8 Cess: Fixed expenses. Net Operating income $4/023.8 7,788 $.4,012 met. Income @ 4000 Units Operating Income $4,023.8 – 4,012 $.
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