Question

Carla Vista Company has the following information available for September 2020.

Unit selling price of video game consoles		$410
Unit variable costs		$328
Total fixed costs		$36,900
Units sold		600

Compute the unit contribution margin.

Unit contribution margin

enter the unit contribution margin

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

Compute Carla Vista’ break-even point in units.

Break-even point in units

enter Break-even point in units

units

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

Answer 1

Unit Contribution Margin = Unit selling price - Unit variable costs
= $410 - $328 = $82 per unit

	Per unit	600 units
Sales Revenue	$                   410	$          2,46,000
Variable Expenses	$                   328	$          1,96,800
Contribution Margin	$                     82	$             49,200
Fixed Expenses		$             36,900
Net Operating Income		$             12,300

Break Even Point in units = Fixed Expenses / Contribution Margin per unit
= $36900 / $82 = 450 units

	Per unit	450 units
Sales Revenue	$                   410	$          1,84,500
Variable Expenses	$                   328	$          1,47,600
Contribution Margin	$                     82	$             36,900
Fixed Expenses		$             36,900
Net Operating Income		$                      -