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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$26,000
Variable expenses 14,000
Contribution margin 12,000
Fixed expenses 7,800
Net operating income$4,200 Required:
Problem 1: What is the contribution margin per unit? (Round your answer to 2 decimal places.)
What is the total amount of manufacturing overhead cost incurred to support this level of production? What is this total amount expressed on a per unit basis?
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