Question

Billings Company has the following information available for September 2017.

Unit selling price of video game consoles		$440
Unit variable costs		$308
Total fixed costs		$59,400
Units sold		660

Prepare a CVP income statement that shows both total and per unit amounts.

AND

Prepare a CVP income statement for the break-even point that shows both total and per unit amounts.

Answer 1

a) CVP Income statement

	Total	Per unit
Sales	290400	440
Variable cost	203280	308
Contribution margin	87120	132
Fixed cost	59400
Net income	27720

b) CVP Income statement

Break even unit = 59400/132 = 450

	Total	Per unit
Sales	198000	440
Variable cost	138600	308
Contribution margin	59400	132
Fixed cost	59400
Net income	0