Question

Ayayal Company has the following information available for September 2017. Unit selling price of video game consoles Unit variable costs Total fixed costs Units sold $440 $308 $59,400 660 * Your answer is incorrect. Compute the unit contribution margin. Unit contribution margin $ e Textbook and Media - Your answer is partially correct. Prepare a CVP income statement that shows both total and per unit amounts. AYAYAI COMPANY CVP Income Statement For the Month Ended September 30, 2017 : Total Per Unit

Answer 1

1)	Unit contribution margin	=	Selling price	-	Variable cost per unit
		=	$           440	-	$        308
		=	$           132
2)	AYAYAI COMPANY
	CVP Income Statement
	For the Month Ended September 30,2017
			Total	Per unit
	Sales		$ 2,90,400	$        440
	Variable cost		$ 2,03,280	$        308
	Contribution Margin		$     87,120	$        132
	Fixed Cost		$     59,400
	Net Income		$     27,720
	Working:
	Sales	=	Units sold	*	Selling price per unit
		=	660	*	$        440
		=	$ 2,90,400
	Variable cost	=	Units sold	*	Variable cost per unit
		=	660	*	$        308
		=	$ 2,03,280
3)	Break even point	=	Fixed Cost	/	Contribution Margin per unit
		=	$     59,400	/	$        132
		=	450
4)	AYAYAI COMPANY
	CVP Income Statement
	For the Month Ended September 30,2017
			Total	Per unit
	Sales		$ 1,98,000	$        440
	Variable cost		$ 1,38,600	$        308
	Contribution Margin		$     59,400	$        132
	Fixed Cost		$     59,400
	Net Income		$ 0
	Working:
	Sales	=	Units sold	*	Selling price per unit
		=	450	*	$        440
		=	$ 1,98,000
	Variable cost	=	Units sold	*	Variable cost per unit
		=	450	*	$        308
		=	$ 1,38,600