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

Compute the unit contribution margin.

Unit contribution margin

enter the unit contribution margin

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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

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Part 3

Compute Sheridan’ break-even point in units.

Break-even point in units

enter Break-even point in units

units

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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

Answer 1