Question

Billings Company has the following information available for September 2017. Unit selling price of video game consoles Unit variable costs Total fixed costs Units sold $520 $364 $70,200 780 Compute the unit contribution margin. Unit contribution margin

Answer 1

Answer
Unit contribution margin=520-364= $156
BILLINGS COMPANY
CVP Income Statement
For the Month Ended September 30, 2017
	Total	Per unit
Sales	$ 405,600	$           520
Variable Costs	$ 283,920	$           364
Contribution Margin	$ 121,680	$           156
Fixed Costs	$    70,200
Net Income/(Loss)	$    51,480
Break even point in units=70200/156= 450
BILLINGS COMPANY
CVP Income Statement
For the Month Ended September 30, 2017
	Total	Per unit
Sales	$ 234,000	$           520
Variable Costs	$ 163,800	$           364
Contribution Margin	$    70,200	$           156
Fixed Costs	$    70,200
Net Income/(Loss)	0