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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	$	80,000
Variable expenses		52,000
Contribution margin		28,000
Fixed expenses		21,840
Net operating income	$	6,160

A) What is the variable expense ratio?____ and what is the break-even point in unit sales?______

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

C) If sales decline to 900 units, what would be the net operating income?______

D) If the selling price increases by $2 per unit and the sales volume decreases by 100 units, what would be the net operating income_____

Answer 1