[The following information applies to the questions displayed below.] Oslo Compa

Question

[The following information applies to the questions displayed below.] 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 $ 22,100 Variable expenses 12,700 Contribution margin 9,400 Fixed expenses 7,708 Net operating income $ 1,692 What is the break-even point in dollar sales? (Round intermediate calculations to 4 decimal places. Round your final answer to the nearest dollar amount.)

Explanation / Answer

Break-even point in dollar sales=$18122.02

Particulars Amount in $ Sales 22100 Less- Variable Expenses 12700 Contribution margin 9400 P/V ratio ( contribution / sales) 42.5339% P/V ratio ( contribution / sales) 42.5339% Fixed expenses 7708 Break even point in Dollar sales ( Fixed expenses / pv ratio 7708/42.5339% 18122.02

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