What is the break-even point in dollar sales

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Reference no: EM132300661

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 $ 20,600

Variable expenses 12,200

Contribution margin 8,400

Fixed expenses 6,468

Net operating income $ 1,932

1.If the variable cost per unit increases by $1.20, spending on advertising increases by $1,700, and unit sales increase by 250 units, what would be the net operating income? (Do not round intermediate calculations.)

2. What is the break-even point in unit sales? (Do not round intermediate calculations.)

3. What is the break-even point in dollar sales? (Round intermediate calculations to 4 decimal places. Round your answer to the nearest dollar amount.)

A. What is the margin of safety percentage? (Round your final answers to the nearest whole percentage (i.e, .12 should be entered as 12)

B. What is the margin of safety in dollars? (Do not round intermediate calculations.)

Reference no: EM132300661

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