Question

Sheridan Company has the following information available for September 2020.

Unit selling price of video game consoles		$400
Unit variable costs		$320
Total fixed costs		$25,600
Units sold		600

Part 1

Your answer has been saved. See score details after the due date.

Compute the unit contribution margin.

Unit contribution margin

enter the unit contribution margin

  

Attempts: 1 of 1 used

Part 2

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

SHERIDAN COMPANY CVP Income Statement For the Month Ended September 30, 2020
		Total		Per Unit
select an income statement item                                                                      Administrative ExpensesContribution MarginCost of Goods SoldFixed CostsGross ProfitNet Income/(Loss)SalesSelling ExpensesVariable Costs		$enter a dollar amount		$enter a dollar amount
select an income statement item                                                                      Administrative ExpensesContribution MarginCost of Goods SoldFixed CostsGross ProfitNet Income/(Loss)SalesSelling ExpensesVariable Costs		enter a dollar amount		enter a dollar amount
select a summarizing line for the first part                                                                      Administrative ExpensesContribution MarginCost of Goods SoldFixed CostsGross ProfitNet Income/(Loss)SalesSelling ExpensesVariable Costs		enter a total amount for the first part		$enter a total amount per unit
select an income statement item                                                                      Administrative ExpensesContribution MarginCost of Goods SoldFixed CostsGross ProfitNet Income/(Loss)SalesSelling ExpensesVariable Costs		enter a dollar amount
select a closing name for this statement                                                                      Administrative ExpensesContribution MarginCost of Goods SoldFixed CostsGross ProfitNet Income/(Loss)SalesSelling ExpensesVariable Costs		$enter a total net income or loss amount

Save for Later

Last saved 1 second ago.

Saved work will be auto-submitted on the due date.

Attempts: 0 of 1 used

Submit Answer

Part 3

Your answer has been saved. See score details after the due date.

Compute Sheridan’ break-even point in units.

Break-even point in units

enter Break-even point in units

units

  

Attempts: 1 of 1 used

Part 4

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

SHERIDAN COMPANY CVP Income Statement For the Month Ended September 30, 2020
		Total		Per Unit
select an income statement item                                                                      Administrative ExpensesContribution MarginCost of Goods SoldFixed CostsGross ProfitNet Income/(Loss)SalesSelling ExpensesVariable Costs		$enter a dollar amount		$enter a dollar amount
select an income statement item                                                                      Administrative ExpensesContribution MarginCost of Goods SoldFixed CostsGross ProfitNet Income/(Loss)SalesSelling ExpensesVariable Costs		enter a dollar amount		enter a dollar amount
select a summarizing line for the first part                                                                      Administrative ExpensesContribution MarginCost of Goods SoldFixed CostsGross ProfitNet Income/(Loss)SalesSelling ExpensesVariable Costs		enter a total amount for the first part		$enter a total amount per unit
select an income statement item                                                                      Administrative ExpensesContribution MarginCost of Goods SoldFixed CostsGross ProfitNet Income/(Loss)SalesSelling ExpensesVariable Costs		enter a dollar amount
select a closing name for this statement                                                                      Administrative ExpensesContribution MarginCost of Goods SoldFixed CostsGross ProfitNet Income/(Loss)SalesSelling ExpensesVariable Costs		$enter a total net income or loss amount

Save for Later

Answer 1

Answer to Part 1:

Unit Contribution Margin = Unit Selling Price - Unit Variable Costs
Unit Contribution Margin = $400 - $320
Unit Contribution Margin = $80

Answer to Part 2:

Answer to Part 3:

Breakeven Point = Fixed Costs / Unit Contribution Margin
Breakeven Point = $25,600 / $80
Breakeven Point = 320 units

Answer to Part 4: