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26 April, 18:44

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 $ 24,800 Variable expenses 13,600 Contribution margin 11,200 Fixed expenses 7,728 Net operating income $ 3,472 Foundational 5-1 Required: 1. What is the contribution margin per unit? (Round your answer to 2 decimal places.)

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  1. 26 April, 22:03
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    11.2 per unit

    Explanation:

    Oslo Company

    Contribution margin per unit =

    (Sales - Variable Expenses) / Sales volume

    = (24,800 - 13,600) / 1,000

    = 11,200 / 1,000

    = 11.2 per unit

    Therefore the contribution margin per unit is 11.2
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