Cannes Company has the following information available for September 2014. (a) C

Question

Cannes Company has the following information available for September 2014.

(a) Compute the contribution margin per unit.

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

(c) Compute Cannes' break-even point in units.

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

Unit selling price of video game consoles
$536 Unit variable costs
$369 Total fixed costs
$66,800 Units sold
804 Cannes Company has the following information available for September 2014.

Explanation / Answer

Hi,

Please find the answer as follows:

Part C:

Break Even Point (Units) = Fixed Cost/Contribution Margin = 66800/167 = 400 Units

Part B:

Thanks.

CANNES COMPANY
CVP Income Statement
For the Month Ended September 30, 2014 Total Per Unit 214400 536 147600 369 66800 167 66800
0

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