Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000...

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Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000...

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	$	55,000
Variable expenses		33,000
Contribution margin		22,000
Fixed expenses		14,960
Net operating income	$	7,040

8. What is the break-even point in unit sales?

business accounting

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Answer 1

Answer #1

Contribution Margin per unit = $22000 / 1000 = $22 per unit

Break Even Point (Units) = Fixed Costs / Contribution Margin per unit
= $14960 / 22 = 680 units

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Answer 2

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