Reference no: EM132586948
Question 1: 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$25,000
Variable expenses 17,500
Contribution margin 7,500
Fixed expenses 4,200
Net operating income$3,300
What is the break-even point in unit sales?
Question 2: 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$25,000
Variable expenses 17,500
Contribution margin 7,500
Fixed expenses 4,200
Net operating income$3,300
How many units must be sold to achieve a target profit of $4,500?