Question

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

Answer 1

Selling price per unit = $520

Variable cost per unit = $364

Contribution margin per unit = Selling price per unit – Variable cost per unit

= 520 - 364

= $156

Contribution margin income statement

	Total	Per unit
Sales	780 x 520 = 405,600	520
Variable cost	780 x 364 = - 283,920	364
Contribution margin	121,680	156
Fixed cost	- 70,200
Operating income	$51,480

Break even point (units) = Fixed cost/Contribution margin per unit

= 70,200/156

= 450

Contribution margin income statement

	Total	Per unit
Sales	450 x 520 = 234,000	520
Variable cost	450 x 364 = -163,800	364
Contribution margin	70,200	156
Fixed cost	- 70,200
Operating income	$0

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