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 |
$ |
21,200 |
| Variable expenses |
|
12,400 |
|
|
|
| Contribution margin |
|
8,800 |
| Fixed expenses |
|
6,952 |
|
|
|
| Net operating income |
$ |
1,848 |
|
|
|
|
| Required: |
|
If the variable cost per unit increases by $1.40, spending on advertising increases by $1,900, and unit sales increase by 250 units, what would be the net operating income? (Do not round intermediate calculations.)
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