Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Blossom Company has the following information available for September 2020. Unit selling price of video game consoles Unit variable costs $430 $258 $63,640 Total fixed
Blossom Company has the following information available for September 2020. Unit selling price of video game consoles Unit variable costs $430 $258 $63,640 Total fixed costs Units sold 600 Your answer is correct. Compute the unit contribution margin. Unit contribution margin 172 Prepare a CVP income statement for the break-even point that shows both total and per unit amounts. BLOSSOM COMPANY CVP Income Statement For the Month Ended September 30, 2020 Total Per Unit Sales 258,000 430 Variable Costs 154,800 258 x X Contribution Margin 103,200 688 Fixed Costs 63,640 Net Income/(Loss) 39,560 In 2019, Crane Company had a break-even point of $319,000 based on a selling price of $4 per unit and fixed costs of $127,600. In 2020, the selling price and the variable costs per unit did not change, but the break-even point increased to $453,000. Your answer is partially correct. Try again. Compute the variable costs per unit and the contribution margin ratio for 2019. (Round Variable cost per unit to 2 decimal places, e.g. 2.25 and Contribution margin ratio to 0 decimal places, e.g. 20.) Variable costs per unit 2.40 $ X Contribution margin ratio 4 % SHOW SOLUTION LINK TO TEXT LINK TO TEXT * Your answer is incorrect. Try again. Compute the increase in fixed costs for 2020. Increase in fixed cost 127,600
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started