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 $ 15,000 9,000 6, 000 3,120 $ 2,880 Net operating income 2. What is the contribution margin ratio? Contribution margin ratio
Q: Required information [The following information applies to the questions displayed below.] Oslo…
A: Variable costs: These are the costs that proportionately change with the changes in the activity…
Q: [The following information applies to the questions displayed below.] Oslo Company prepared the…
A: Degree of operating leverage = Contribution / Operating income
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: Answer 1. Contribution margin per unit = Total contribution / No. of units = 8000 / 1000 = 8 per…
Q: Wight Corporation has provided its contribution format income statement for June. The company…
A: Contribution margin = Sales - variable cost = $193,200 - $87400 =$105,800 Contribution margin per…
Q: income statement based on a sales volume of 1,000 units (the relevant range of production is 500…
A: The operating leverage is calculated as contribution margin divided by EBIT.
Q: Required information [The following information applies to the questions displayed below.] Oslo…
A: Contribution margin per unit is determined by subtracting the variable cost per unit less the sales…
Q: Ehrlich Enterprises prepared the following contribution format income statement based on a sales…
A: As the question has more than 3 sub-parts, the first 3 subparts are answered as per guidelines. If…
Q: Glannini Inc., which produces and sells a single product, has provVided the following contribution…
A: The income statement determines the net income of the business by subtracting the total expenses…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: Since you have asked a question with multiple sub parts, we will answer the first 3 sub parts for…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: Contribution margin ratio = (Contribution margin / sales) x 100 = (13500/45000)*100 = 30%
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: Contribution is the amount of earnings left after deducting all direct costs from the revenue from…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: The operating leverage indicates a level at which the business entity can increase its income by…
Q: 5. Oslo Company prepared the following contribution format income statement based on a sales volume…
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: Required information [The following information applies to the questions displayed below.] Oslo…
A: Operating income: Income statement reports revenues and expenses from business operations, and the…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: Net operating income: In a contribution format income statement, when the fixed expense is deducted…
Q: Required information [The following information applies to the questions displayed below] Oslo…
A: Break-Even Point: It is the point of sales at which entity neither earns a profit nor suffers a…
Q: Cabrera Enterprises, a company that produces and sells a single product has provided its…
A: Solution: Contribution margin per unit = Contribution margin / Nos of units = $813,750 / 52500 =…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: Cost accounting is one of the branches of accounting. Under this branch, all types of costs and…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: The change in operating income owing to a change in sales is measured by the degree of operating…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: Formula: Degree of operating leverage = Contribution margin / Net operating income.
Q: Required information [The following information applies to the questions displayed below.] Oslo…
A: Selling price per unit: It is the price at which a unit of product is sold in the market. Variable…
Q: Required information [The following information applies to the questions displayed below] Oslo…
A: Break even point is computed by dividing the fixed cost by contribution per unit. Fixed cost=$2250…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: The margin of safety is the excess value of the amount the firm earns over its break-even sales. It…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: Contribution margin per unit is the difference between selling price per unit and variable cost per…
Q: Required information [The following information applies to the questions displayed below] Oslo…
A: The contribution margin income statement is prepared by deducting the amount of variable expenses…
Q: The contribution margin that the company would disclose on an absorption-costing income statement…
A: Total variable cost = Variable production cost + variable selling and admin cost = 4 + 1 = P5 per…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: Contribution margin: Difference between the sales and the variable costs is called contribution…
Q: Required information [The following information applies to the questions displayed below] Oslo…
A: Cost-Volume-Profit (CVP) Analysis: It is a method followed to analyze the relationship between the…
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A: Given : Sales (5000 units) 320,000 Variable expenses 150,000 Contribution margin…
Q: The following information comes from the companies accounting records at a sales level of $50,000…
A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…
Q: slo Company prepared the following contribution format income statement based on a sales volume of…
A: Variable Cost - The total cost of production of a good comprises of the total fixed cost of…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: Contribution Margin Ratio: When a company's revenues exceed its variable expenses, the difference is…
Q: Required information [The following information applies to the questions displayed below.] Oslo…
A: Contribution: The term contribution or contribution margin in costing is the sales less variable…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: Degree of operating leverage = Contribution margin / Net operating income = $35000/4900 = 7.14
Q: Required information [The following information applies to the questions displayed below.] Oslo…
A: Cost-volume profit analysis is a tool that helps in decision making by establishing a relationship…
Q: Wight Corporation has provided its contribution format income statement for June. The company…
A: The question is based on the concept of Cost Accounting.
Q: Required information [The following information applies to the questions displayed below.] Oslo…
A: Break-even point is that point at which a company is making no profit no loss. In other words at…
Q: Kelchner Corporation has provided the following contribution format income statement. Assume that…
A: Contribution margin ratio = contribution margin / sales
Q: ! Required information [The following information applies to the questions displayed below] Oslo…
A: Cost-volume profit analysis is a tool that helps in decision making by establishing a relationship…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: Information given in the question is as follows: Sales $ 30,000 Variable expenses 16,500…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: Degree of operating leverage (DOL): DOL reflects the variable and fixed cost relationship of an…
Q: Required information [The following information applies to the questions displayed below.] Oslo…
A: Contribution - fixed cost =profit
Q: Cassius Corporation has provided the following contribution format income statement. Assume that the…
A: Contribution Margin: Contribution margin is the excess of selling price over the variable costs of a…
Q: [The following information applies to the questions displayed below.] Oslo Company prepared the…
A: Contribution margin is the difference between the sales revenue and variable cost and in other words…
Q: Rovinsky Corporation, a company that produces and sells a single product, has provided its…
A: Net Income of the business will be calculated by deducting fixed costs of business from contribution…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: The degree of operating leverage can be defined as the accounting measure that is used to identify…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: Degree of operating leverage = Contribution margin/Net operating income
Q: Ehrlich Enterprises prepared the following contribution format income statement based on a sales…
A: As the question has more than 3 sub-parts, the first 3 subparts are answered as per guidelines. If…
Q: Sealtek Inc has provided its contribution format income statement data below for September Sales…
A: Contribution indicates the amount available to recover the fixed cost and priofit. It can be…
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- Required information [The following information applies to the questions displayed below] 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): $ 10,000 5,500 4,500 2,250 Sales Variable expenses Contribution margin Fixed expenses Net operating income 2,250 2. What is the contribution margin ratio? Contribution margin ratioCompute the missing amounts in the contribution income statement shown below: Note: Round "Per Unit" answers to 2 decimal places. Number of units sold Sales Variable costs Contribution margin Fixed costs Income Company A Total $ 525,300 336,600 $ 122,400 Per unit $ 103.00 Company B 2,450 Total 142,100 193,550 71,050 Per unitCompute the missing amounts in the contribution income statement shown below: (Round "Per Unit" answers to 2 decimal places.) Number of units sold Sales Variable costs Contribution margin Fixed costs Income Company A Per unit Total S 374,100 $ 87.00 249,400 $ 86,000 Company B 2,250 Total 94,500 123,750 47,250 Per unit
- 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 $15,000 9,000 6,000 3,120 $ 2,880 Net operating income Required: 1. What is the contribution margin per unit? (Round your answer to 2 decimal places.) Contribution margin per unitComplete each of the following contribution format income statements by supplying the missing numbers. a. b. c. d. Sales revenue $enter the sales revenue amount in dollars $504,696 $enter the sales revenue amount in dollars $671,472 Variable expenses 236,284 enter the variable expenses amount in dollars 123,704 enter the variable expenses amount in dollars Contribution margin 150,052 156,624 enter the contribution margin in dollars 490,336 Fixed expenses enter the fixed expenses amount in dollars 87,320 138,084 enter the fixed expenses amount in dollars Operating income 20,502 enter the operating income amount in dollars enter the operating income amount in dollars enter the operating income amount in dollars Income taxes enter the income tax amount in dollars 20,791 20,278 63,805 Net income $14,351 $enter the net income amount in dollars $60,834 $191,415Required information [The following information applies to the questions displayed below.] 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 $ 10,000 Variable expenses Contribution margin Fixed expenses 5,500 4,500 2,250 $4 Net operating income 2,250 3. What is the variable expense ratio? Variable expense ratio
- Smithen Company, a wholesale distributor, has been operating for only a few months. The company sells three products-sinks, mirrors, and vanities. Budgeted sales by product and in total for the coming month are shown below based on planned unit sales as follows: Sinks Mirrors Vanities Total Units 1,000 500 500 2,000 Percentage of total sales Sales Variable expenses Contribution margin Contribution margin per unit Fixed expenses Operating income Break-even point in unit sales: Percentage sex 25% 25% 100% Break-even point in sales dollars: Total Fixed expenses. Weighted-average CM per unit Sinks 48% Product Mirrors 20% $264,000 100.00% $110,000 100.00% $176,000 100.00% $550,000 100.00% 80,000 30.30% 72,000 65.45% 82,000 46.59% 219,300 39.87% 53.41% 60.13% $184,000 $ 94,000 330,700 69.70% 38,000 34.55% S 76.00 $ 184.00 $ 188.00 Fixed expenses Overall CM ratio $293,300 $158.00 Vanities 32% $293,300 0.60 1,856.33 units Total 100% 293,300 $ 37,400 = $487,798.61 *($184.00 0.50) + ($76.00 x…Q No. 1: Oslo Company prepared the following contribution format income statement based on a sales volume of 2,000 units (the relevant range of production is 1500 units to 2,500 units): 50,000 28,000 22,000 Sales Less: Variable Expenses Contribution Margin Less: Fixed Expenses Net Operation Income 12,000 10,000 Required: (Answer each question independently and always refer to the original data unless instructed otherwise.) a. What is the contribution margin per unit and contribution margin ratio? b. If sales increase to 2,005 units, what would be the increase in net operating income? c. If sales decline to 1500 units, what would be the net operating income? d. If the variable cost per unit increases by $2, spending on advertising increases by $2,500, and unit sales increase by 500 units, what would be the net operating income? e. What is the break-even point in unit sales and in dollar sales? f. How many units must be sold to achieve a target profit of $17,500? g. What is the margin of…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 $ 50,000 27,500 22,500 14,850 $ 7,650 11. What is the margin of safety in dollars? What is the margin of safety percentage? Margin of safety in dollars Margin of safety percentage %
- 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 12,000 Contribution margin 8,000 Fixed expenses 6,000 Net operating income $2,000 Required: (Answer each question independently and always refer to the original data unless instructed otherwise) 1. What is the contribution margin per unit? 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? 5. If sales decline to 900 units, what would be the net operating income? 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? 7. What is the break-even point in unit sales?Required information [The following information applies to the questions displayed below.] 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 $ 10,000 5,500 Variable expenses Contribution margin Fixed expenses 4,500 2,250 Net operating income $4 2,250 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 incomeThe accountant for PNW, LLC has prepared a contribution format income statement. Assume that the following information is within the relevant range. Sales (9,000 units) Variable expenses Contribution margin Fixed expenses $540,000 405,000 135,000 130,500 Net operating income $ 4,500 Assuming that the information provided is within the relevant range, the contribution margin ratio is closest to: