Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000...

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Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000...

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

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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

Required:

1. What is the contribution margin per unit? (Round your answer to 2 decimal places.)

2. What is the contribution margin ratio?

3. What is the variable expense ratio?

4. If sales increase to 1,001 units, what would be the increase in net operating income? (Round your answer to 2 decimal places.)

business accounting

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