Billings Company has the following information available for September 2017. Unit selling price of video game consoles
Question:
Billings Company has the following information available for September 2017.
Unit selling price of video game consoles ………………… $ 400
Unit variable costs …………………………………….............…… $ 280
Total fixed costs ………………………………………...............….. $ 54,000
Units sold ………………………………………………...................… 600
Instructions
(a) Compute the unit contribution margin.
(b) Prepare a CVP income statement that shows both total and per unit amounts.
(c) Compute Billings’ break-even point in units.
(d) Prepare a CVP income statement for the break-even point that shows both total and per unit amounts.
Contribution MarginContribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Accounting Principles
ISBN: 978-1118875056
12th edition
Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso
Question Posted: