Culver Company has the following information available forSeptember 2017.Unit selling price of video game...Culver...

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Accounting

Culver Company has the following information available forSeptember 2017.
Unit selling price of video game consoles $476
Unit variable costs $333
Total fixed costs $64,350
Units sold
714
a.)Compute the unit contribution margin.
b.)Prepare a CVP income statement that shows both total and perunit amounts.
c.)Compute Billing's break even points in units.
d.)Prepare a CVP income statement for the break even point thatshows both total and per unit amounts.

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3.9 Ratings (476 Votes)

Part -(a)	Contribution margin = (Unit sales - Variable cost) = (476-333) = $143

Part -(b)	CVP Income statement

		Per unit	Total
	Sales	476	339,864
	Variable cost	333	237,762
	Contribution margin	143	102,102
	Fixed cost		64,350
	Net operating income		37,752

Part -(c)	Break even point = (Fixed cost / Contribution per unit) = (64,350/143) = 450

Part -(d)	CVP Income statement

		Per unit	Total
	Sales	476	214,200
	Variable cost	333	149,850
	Contribution margin	143	64,350
	Fixed cost		64,350
	Net operating income		-

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Transcribed Image Text

In: AccountingCulver Company has the following information available forSeptember 2017.Unit selling price of video game...Culver Company has the following information available forSeptember 2017.Unit selling price of video game consoles$476Unit variable costs$333Total fixed costs$64,350Units sold714a.)Compute the unit contribution margin.b.)Prepare a CVP income statement that shows both total and perunit amounts.c.)Compute Billing's break even points in units.d.)Prepare a CVP income statement for the break even point thatshows both total and per unit amounts.

Unit selling price of video game consoles		$476
Unit variable costs		$333
Total fixed costs		$64,350
Units sold		714 a.)Compute the unit contribution margin. b.)Prepare a CVP income statement that shows both total and perunit amounts. c.)Compute Billing's break even points in units. d.)Prepare a CVP income statement for the break even point thatshows both total and per unit amounts.