Exercise 5-13 (Video)
Billings Company has the following information available forSeptember 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 perunit amounts.
BILLINGS COMPANY
CVP Income Statement
For the Month Ended September 30, 2020
Total
Per Unit
Administrative ExpensesContribution MarginCost of GoodsSoldFixed CostsGross ProfitNet Income/(Loss)SalesSellingExpensesVariable Costs
$
$
Administrative ExpensesContribution MarginCost of GoodsSoldFixed CostsGross ProfitNet Income/(Loss)SalesSellingExpensesVariable Costs
Administrative ExpensesContribution MarginCost of GoodsSoldFixed CostsGross ProfitNet Income/(Loss)SalesSellingExpensesVariable Costs
$
Administrative ExpensesContribution MarginCost of GoodsSoldFixed CostsGross ProfitNet Income/(Loss)SalesSellingExpensesVariable Costs
Administrative ExpensesContribution MarginCost of GoodsSoldFixed CostsGross ProfitNet Income/(Loss)SalesSellingExpensesVariable Costs
$
Compute Billings’ break-even point in units.
Break-even point in units units
Prepare a CVP income statement for the break-even point thatshows 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 GoodsSoldFixed CostsGross ProfitNet Income/(Loss)SalesSellingExpensesVariable Costs
$
$
Administrative ExpensesContribution MarginCost of GoodsSoldFixed CostsGross ProfitNet Income/(Loss)SalesSellingExpensesVariable Costs
Administrative ExpensesContribution MarginCost of GoodsSoldFixed CostsGross ProfitNet Income/(Loss)SalesSellingExpensesVariable Costs
$
Administrative ExpensesContribution MarginCost of GoodsSoldFixed CostsGross ProfitNet Income/(Loss)SalesSellingExpensesVariable Costs
Administrative ExpensesContribution MarginCost of GoodsSoldFixed CostsGross ProfitNet Income/(Loss)SalesSellingExpensesVariable Costs
$
