Billings Company has the following information available for September 2020. Unit selling price of video game consoles

Question:

Billings Company has the following information available for September 2020.

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 Margin
Contribution 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...
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Related Book For  book-img-for-question

Financial and Managerial Accounting

ISBN: 978-1119392132

3rd edition

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

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