<p>E5-13</p> <p> Sannes Company has the following information available for
ID: 2443864 • Letter: #
Question
<p>E5-13</p><p> Sannes Company has the following information available for September 2011</p>
<p>Unit selling price of video game consoles $ 400</p>
<p>Unit variable cost $270</p>
<p>Total fixed costs$52,000</p>
<p>Units sold <span> </span>620</p>
<p>A- prepare a CBP income statement that shows both total per unit amounts</p>
<p>B- Compute Sannes break even point in units</p>
<p>C- Prepare a CVP income statement for the break even point that shows both total and per unit amounts</p>
Explanation / Answer
SANNES COMPANY CVP Income Statement For the month ended September,2011 Total Per Unit Sales(620 video game consoles) $248,000 $400 Variable costs 167,400 270 Contribution margin 80,600 130 Fixed costs 52,000 Net Income 28,600 b) Break-even point in units Break -even point in units = Fixed Costs/Contribution margin per unit $52,000/130 400 units c)CVP statement for break-even point Total Per Unit Sales (400 units) 160,000 $400 Variable costs 108,000 270 Contribution margin 52,000 130 Fixed costs 52,000 Net Income 0
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