What is the contribution margin per unit Round your answer t

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

What is the contribution margin ratio? (Enter your answer as a percentage rounded to 2 decimal places (i.e., 0.13579 should be entered as 13.58).)

What is the variable expense ratio? Round your percentage answer to 2 decimal places (i.e .1234 should be entered as 12.34).

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

What is the contribution margin per unit? (Round your answer to 2 decimal places.) What is the contribution margin ratio? (Enter your answer as a percentage rounded to 2 decimal places (i.e., 0.13579 should be entered as 13.58).) What is the variable expense ratio? Round your percentage answer to 2 decimal places (i.e .1234 should be entered as 12.34). If sales increase to 1,001 units, what would be the increase in net operating income? (Round your answer to 2 decimal places.)

[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 Variable expenses $20,300 12,100 Contribution margin Fixed expenses 8,200 6,232 Net operating income $ 1,968

Solution

Solution:

Contribution margin per unit = Contribution / Sales units = $8,200/1000 = $8.20 per unit

Contribution margin ratio = Contribution/Sales*100 = $8,200/$20,300*100 = 40.39%

Variable Expenses Ratio = Variable Expense / Sales *100 = $12,100 / $20,300*100 = 59.61%

If sales increases to 1001 units then contribution margin = 1001*8.20 = $8,208.20

Net operating income at 1001 unit = $8,208.20 - $6,232 = $1,976.20

Increase in net operating income = $1,976.20 - $1,968 = $8.20