Foundational 5 7
| 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 | $ | 23,000 |
| Variable expenses | 13,000 | |
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| Contribution margin | 10,000 | |
| Fixed expenses | 8,500 | |
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| Net operating income | $ | 1,500 |
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| Required: |
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If the variable cost per unit increases by $.50, spending on advertising increases by $1,000, and unit sales increase by 250 units, what would be the net operating income? (Do not round intermediate calculations.) |