Question

Oriole Company has the following information available for September 2020. Unit selling price of video game consoles Unit variable costs Total fixed costs Units sold $420 $252 $63,840 600 Your answer is correct. Compute the unit contribution margin. Unit contribution margin 168 e Textbook and Media Your answer is correct. Prepare a CVP income statement that shows both total and per unit amounts. ORIOLE COMPANY CVP Income Statement For the Month Ended September 30, 2020 Total Per Unit Sales 252000 420

Answer 1

1) Computation of Break Even Point in units Break even point (Unit) = Total Fixed cost / contribution margine per unit Contribution margin per unit = (Selling price per unit - Variable cost per unit) Total fixed cost = $63840 Contribution Margine Per unit = $420 - $252 = $168 Therefore BEPUnit = $63840 / $168 per unit = 380 unit

2) Income Statement for the Break Even Point ORIOLE COMPANY CVP Income Statement For the Month Ended September 30, 2020 Total Per Unit Sales (380 unit * $420) A $159,600 $420 Variable Cost (380 unit * $252) B $95,760 $252 Contribution Margine C=A-B $63,840 $168 Fixed Costs [ Ꭰ . $63,840 Net Income/(Loss) C-D $o