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 4. If sales increase to 1,001 units, what would be the increase in net operating income

The increase in net operating income will be $8

Explanation:

1000 units

Selling price = $20,000 / 1,000 = $20

Variable cost = $12,000 / 1,000 = $12

1001 units

Contribution margin Income statement

Sales                                  $20,020

Less: Variable Expenses  $12,012

Contribution margin                           $8,008

Less: Fixed Expenses                        $6,000

Net operating Income                        $2,008

Selling price = $20 x 1,001 = $20,020

Variable cost = $12 x 1,001 = $12,012

Increase in Income statement = $2,008 - $2,000 = $8

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.

answer; 33,000;