Exercise 21-6 Contribution Margin Income Statement and Breakeven Analysis

Using the data in the contribution margin income statement for Broadway, Inc., that follows, calculate (a) selling price per unit, (b) variable costs per unit, and (c) breakeven point in units and in sales dollars.

Broadway, Inc. Contribution Margin Income Statement For the Year Ended December 31
Sales (20,000 units)				$16,000,000
Less variable costs:
Cost of goods sold		$8,000,000
Selling, administrative, and general		4,000,000
Total variable costs				12,000,000
Contribution margin				$4,000,000
Less fixed costs:
Overhead		$1,200,000
Selling, administrative, and general		800,000
Total fixed costs				2,000,000
Operating income				$2,000,000

a. Selling price per unit	$
b. Variable costs per unit	$
c. Breakeven in units		units
Breakeven in dollars	$