Cannes Company has the following information available for September 2014. Unit selling price of video game consoles

Question:

Cannes Company has the following information available for September 2014.

Unit selling price of video game consoles …………….. $ 400

Unit variable costs ……………………………………... $ 275

Total fixed costs ……………………………………...... $52,000

Units sold ……………………………………................ 600

Instructions

(a) Compute the contribution margin per unit.

(b) Prepare a CVP income statement 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...