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The question is incomplete and hence the correct question is shown below
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
If the variable cost per unit increases by $1, spending on advertising increases by $1,150, and unit sales increase by 130 units, what would be the net operating income?
The net operating income is $860
Given the values for sales , variable expenses , contribution margin , fixed expenses and the net operating income
We know that
Sales: ((1150+130)=1180 units) * ($20,000/10)=$20) = $23,600
Variable Expenses: 1180 units * ($12,000/1000)+1) = $13) = $15,340
Contribution Margin (Sales - Variable Expenses): $8,260
Fixed Expense (Variable Expense - Contribution Margin): $7,400
Net Operating Income (Contribution Margin - Fixed Expense): $860
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