Question

Billings Company has the following information available for September 2017.

Unit selling price of video game consoles		$564
Unit variable costs		$395
Total fixed costs		$76,050
Units sold		846

Compute the unit contribution margin.

Unit contribution margin

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

BILLINGS COMPANY CVP Income Statement                                                                       For the Quarter Ended September 30, 2017September 30, 2017For the Month Ended September 30, 2017
		Total		Per Unit
Administrative ExpensesContribution MarginCost of Goods SoldFixed CostsGross ProfitNet Income/(Loss)SalesSelling ExpensesVariable Costs		$		$
Administrative ExpensesContribution MarginCost of Goods SoldFixed CostsGross ProfitNet Income/(Loss)SalesSelling ExpensesVariable Costs
Administrative ExpensesContribution MarginCost of Goods SoldFixed CostsGross ProfitNet Income/(Loss)SalesSelling ExpensesVariable Costs				$
Administrative ExpensesContribution MarginCost of Goods SoldFixed CostsGross ProfitNet Income/(Loss)SalesSelling ExpensesVariable Costs
Administrative ExpensesContribution MarginCost of Goods SoldFixed CostsGross ProfitNet Income/(Loss)SalesSelling ExpensesVariable Costs		$

eTextbook and Media

  

  

Compute Billings’ break-even point in units.

Break-even point in units

units

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

BILLINGS COMPANY CVP Income Statement                                                                       For the Quarter Ended September 30, 2017For the Month Ended September 30, 2017September 30, 2017
		Total		Per Unit
Administrative ExpensesContribution MarginCost of Goods SoldFixed CostsGross ProfitNet Income/(Loss)SalesSelling ExpensesVariable Costs		$		$
Administrative ExpensesContribution MarginCost of Goods SoldFixed CostsGross ProfitNet Income/(Loss)SalesSelling ExpensesVariable Costs
Administrative ExpensesContribution MarginCost of Goods SoldFixed CostsGross ProfitNet Income/(Loss)SalesSelling ExpensesVariable Costs				$
Administrative ExpensesContribution MarginCost of Goods SoldFixed CostsGross ProfitNet Income/(Loss)SalesSelling ExpensesVariable Costs
Administrative ExpensesContribution MarginCost of Goods SoldFixed CostsGross ProfitNet Income/(Loss)SalesSelling ExpensesVariable Costs		$

eTextbook and Media

Answer 1