Carla Vista Company has the following information available for September 2020. Unit selling price of video game consoles $400 Unit variable costs $240 Total fixed costs $54,400 Units sold 600 (a) Compute the unit contribution margin. Unit contribution margin $ (b) Prepare a CVP income statement that shows both total and per unit amounts. (c) Compute Carla Vista’ break-even point in units. Break-even point in units units (d) Prepare a CVP income statement for the break-even point that shows both total and per unit amounts
Carla Vista Company has the following information available for September 2020. Unit selling price of video game consoles $400 Unit variable costs $240 Total fixed costs $54,400 Units sold 600 (a) Compute the unit contribution margin. Unit contribution margin $ (b) Prepare a CVP income statement that shows both total and per unit amounts. (c) Compute Carla Vista’ break-even point in units. Break-even point in units units (d) Prepare a CVP income statement for the break-even point that shows both total and per unit amounts
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Carla Vista Company has the following information available for September 2020.
| Unit selling price of video game consoles | $400 | |
| Unit variable costs | $240 | |
| Total fixed costs | $54,400 | |
| Units sold | 600 |
(a)
Compute the unit contribution margin.
| Unit contribution margin | $ |
(b)
Prepare a CVP income statement that shows both total and per unit amounts.
(c)
Compute Carla Vista’ break-even point in units.
| Break-even point in units | units |
(d)
Prepare a CVP income statement for the break-even point that shows both total and per unit amounts.
Transcribed Image Text:(b)
Prepare a CVP income statement that shows both total and per unit amounts.
CARLA VISTA COMPANY
CVP Income Statement
Total
Per Unit
Sales
Variable Costs
Contribution Margin
Fixed Costs
Net Income/(Loss)
%24
%24
%24
Transcribed Image Text:(d)
Prepare a CVP income statement for the break-even point that shows both total and per unit amounts.
CARLA VISTA COMPANY
CVP Income Statement
Total
Per Unit
Sales
Variable Costs
Contribution Margin
Fixed Costs
Net Income/(Loss)
$4
i
%24
%24
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