Question
Exercise 5-13 (Video) Billings Company has the following information available for September 2020. Unit selling price of video game consoles$400 Unit variable costs$280 Total fixed
Exercise 5-13 (Video)
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 sold600
Compute the unit contribution margin.
Unit contribution margin
Prepare a CVP income statement that shows both total and per unit amounts.
BILLINGS COMPANY CVP Income Statement For the Month Ended September 30, 2020
Total
Per Unit
Administrative ExpensesContribution MarginCost of Goods SoldFixed CostsGross ProfitNet Income/(Loss)SalesSelling ExpensesVariable Costs
$
$
Administrative ExpensesContribution MarginCost of Goods SoldFixed CostsGross ProfitNet Income/(Loss)SalesSelling ExpensesVariable Costs
Administrative ExpensesContribution MarginCost of Goods SoldFixed CostsGross ProfitNet Income/(Loss)SalesSelling ExpensesVariable Costs
$
Administrative ExpensesContribution MarginCost of Goods SoldFixed CostsGross ProfitNet Income/(Loss)SalesSelling ExpensesVariable Costs
Administrative ExpensesContribution MarginCost of Goods SoldFixed CostsGross ProfitNet Income/(Loss)SalesSelling ExpensesVariable Costs
$
Compute Billings break-even point in units.
Break-even point in units units
Prepare a CVP income statement for the break-even point that shows both total and per unit amounts.
BILLINGS COMPANY CVP Income Statement For the Month Ended September 30, 2020
Total
Per Unit
Administrative ExpensesContribution MarginCost of Goods SoldFixed CostsGross ProfitNet Income/(Loss)SalesSelling ExpensesVariable Costs
$
$
Administrative ExpensesContribution MarginCost of Goods SoldFixed CostsGross ProfitNet Income/(Loss)SalesSelling ExpensesVariable Costs
Administrative ExpensesContribution MarginCost of Goods SoldFixed CostsGross ProfitNet Income/(Loss)SalesSelling ExpensesVariable Costs
$
Administrative ExpensesContribution MarginCost of Goods SoldFixed CostsGross ProfitNet Income/(Loss)SalesSelling ExpensesVariable Costs
Administrative ExpensesContribution MarginCost of Goods SoldFixed CostsGross ProfitNet Income/(Loss)SalesSelling ExpensesVariable Costs
$
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