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Required information [The following information applies to the questions displayed below.] Part 4 of 15 Oslo Company preparedRequired information Part 10 of 15 (The following information applies to the questions displayed below.] Oslo Company prepareRequired information [The following information applies to the questions displayed below.] Part 11 of 15 Oslo Company prepare

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Question 4:
Method 1:
For 1000 unit Per unit
Sales $              100,000 $        100
VC $                65,000 $           65
Contribution $                35,000 $           35
For 1001 unit
Sales $              100,100
VC $                65,065
Contribution $                35,035
- Fixed Cost $                30,100
Net Income $                  4,935
Method 2:
Contribution Margin =35000/100000
= 35.00%
Increase in Sale Value =100000/1000
$                      100
Increase in Contribution/Net income = 100 * 35.00%
$                        35

Question 10:

Sales $              100,000
VC $                65,000
Contribution $                35,000
- Fixed Cost $                30,100
Net Income $                  4,900
Additional Net income Required = 21000 - 4900
= $                16,100
Contribution per Unit (From Question 4) $                        35
Additional units to be sold                    460.00
Total Units to be sold = 1000+460
                1,460.00

Question 11:

Sales $              100,000
VC $                65,000
Contribution $                35,000
- Fixed Cost $                30,100
Net Income $                  4,900
Break Even Units =Fixed Cost / Contribution per Unit
= 30100 / 35
= 860 Units
Total Units Sold = 1000 Units
Margin Safety (Units) = 1000 - 860
= 140 Units
Margin Safety ($) = 140*100
                   14,000
Margin Safety (Percent) = 14000/100000
14.00%
Method 2:
Break Even Value ($) = Fixed Cost / Contrbution Margin
= 30100/0.35
$                86,000
Margin Safety ($) = 100000-86000
$                14,000
Margin Safety (Percent) = 14000/100000
14.00%
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