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Using the data in thecontribution marginincome statement for Broadway, Inc., that follows, calculate (a) selling price per unit, (b)variable costsper unit, and (c)breakeven pointin units
Using the data in thecontribution marginincome statement for Broadway, Inc., that follows, calculate (a) selling price per unit, (b)variable costsper unit, and (c)breakeven pointin 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 | $ ? |
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