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Blossom Company has the following information available for September 2022. Unit selling price of video game consoles Unit variable costs Total fixed costs Units sold $400 $320 $24,000 600

Blossom Company has the following information available for September 2022. Unit selling price of video game consoles Unit variable costs Total fixed costs Units sold $400 $320 $24,000 600

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Blossom Company has the following information available for September 2022. - Unit selling price of video game consoles: $400 - Unit variable costs: $320 - Total fixed costs: $24,000 - Units sold: 600
Transcribed Image Text:Blossom Company has the following information available for September 2022. - Unit selling price of video game consoles: $400 - Unit variable costs: $320 - Total fixed costs: $24,000 - Units sold: 600
### Educational Content on CVP Income Statement #### Section 1: CVP Income Statement for Blossom Company **For the Month Ended September 30, 2022** 1. **Sales** - Total: $240,000 - Per Unit: $560 - Percent of Sales: (Not provided) 2. **Variable Costs** - Total: $192,000 - Per Unit: $385 - Percent of Sales: (Not provided) 3. **Contribution Margin** - Total: $48,000 - Per Unit: $80 - Percent of Sales: (Not provided) 4. **Fixed Costs** - Total: $24,000 5. **Net Income/(Loss)** - Total: $24,000 #### Section 2: CVP Income Statement at Break-Even Point **For the Month Ended September 30, 2022** 1. **Sales** - Total: $168,000 - Per Unit: $560 - Percent of Sales: (Not provided) 2. **Variable Costs** - Total: $115,500 - Per Unit: $385 - Percent of Sales: (Not provided) 3. **Contribution Margin** - Total: $52,500 - Per Unit: $80 - Percent of Sales: (Not provided) 4. **Fixed Costs** - Total: $24,000 5. **Net Income/(Loss)** - Total: $28,500 ### Explanation - **Sales**: This represents the total revenue generated from selling products or services. - **Variable Costs**: Costs that vary directly with the level of production or sales volume. - **Contribution Margin**: The amount remaining from sales revenue after variable costs are deducted. It contributes to covering fixed costs and generating profit. - **Fixed Costs**: Costs that remain constant regardless of the production or sales volume. - **Net Income/(Loss)**: The profit or loss after all expenses (variable and fixed) are deducted from total sales. This educational content showcases how Blossom Company uses CVP (Cost-Volume-Profit) analysis to understand the financial outcomes at both current sales levels and the break-even point.
Transcribed Image Text:### Educational Content on CVP Income Statement #### Section 1: CVP Income Statement for Blossom Company **For the Month Ended September 30, 2022** 1. **Sales** - Total: $240,000 - Per Unit: $560 - Percent of Sales: (Not provided) 2. **Variable Costs** - Total: $192,000 - Per Unit: $385 - Percent of Sales: (Not provided) 3. **Contribution Margin** - Total: $48,000 - Per Unit: $80 - Percent of Sales: (Not provided) 4. **Fixed Costs** - Total: $24,000 5. **Net Income/(Loss)** - Total: $24,000 #### Section 2: CVP Income Statement at Break-Even Point **For the Month Ended September 30, 2022** 1. **Sales** - Total: $168,000 - Per Unit: $560 - Percent of Sales: (Not provided) 2. **Variable Costs** - Total: $115,500 - Per Unit: $385 - Percent of Sales: (Not provided) 3. **Contribution Margin** - Total: $52,500 - Per Unit: $80 - Percent of Sales: (Not provided) 4. **Fixed Costs** - Total: $24,000 5. **Net Income/(Loss)** - Total: $28,500 ### Explanation - **Sales**: This represents the total revenue generated from selling products or services. - **Variable Costs**: Costs that vary directly with the level of production or sales volume. - **Contribution Margin**: The amount remaining from sales revenue after variable costs are deducted. It contributes to covering fixed costs and generating profit. - **Fixed Costs**: Costs that remain constant regardless of the production or sales volume. - **Net Income/(Loss)**: The profit or loss after all expenses (variable and fixed) are deducted from total sales. This educational content showcases how Blossom Company uses CVP (Cost-Volume-Profit) analysis to understand the financial outcomes at both current sales levels and the break-even point.
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