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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):
Solution
Hi,
Please find the detailed answer as follows:
Break Even Point (Units) = Fixed Cost/Contribution Per Unit
Contribution Per Unit = 8000/1000 = 8 per unit
Break Even Point (Units) = 6000/8 = 750 units
Answer is 750 units .
Thanks.

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Oslo Company prepared the following contribution format income statem (5).docx

  • 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): Solution Hi, Please find the detailed answer as follows: Break Even Point (Units) = Fixed Cost/Contribution Per Unit Contribution Per Unit = 8000/1000 = 8 per unit Break Even Point (Units) = 6000/8 = 750 units Answer is 750 units . Thanks.