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: |
| If the selling price increases by $2 per unit and the sales volume decreases by 100 units, what would be the net operating income? |