- Contribution Income Statement and Cost-Volume-Profit Graph Picnic Time produces a picnic basket that is sold for $100 per unit. Assume the company produced and sold 4,000 baskets during July. There were no beginning or ending inventories. Variable and fixed costs follow. Variable Costs per Unit Fixed Costs per Month Manufacturing: Direct materials.. $25 Direct labor.... 15 Manufacturing overhead........ Selling and administrative.... Total... $ 36,000 68,000 $104,000 Manufacturing overhead..... 5 $45 Selling and administrative.... 4 Total. $49 REQUIRED пот! Prepare a contribution income statement for July. b. Prepare a cost-volume-profit graph. Label the horizontal axis in units with a maximum value of 8,000. Label the vertical axis in dollars with a maximum value of $1,000,000. Draw a verti- cal line on the graph for the current (4,000) unit sales level, and label total variable costs, total fixed costs, and total profits at 4,000 units.

- Contribution Income Statement and Cost-Volume-Profit Graph Picnic Time produces a picnic basket that is sold for $100 per unit. Assume the company produced and sold 4,000 baskets during July. There were no beginning or ending inventories. Variable and fixed costs follow. Variable Costs per Unit Fixed Costs per Month Manufacturing: Direct materials.. $25 Direct labor.... 15 Manufacturing overhead........ Selling and administrative.... Total... $ 36,000 68,000 $104,000 Manufacturing overhead..... 5 $45 Selling and administrative.... 4 Total. $49 REQUIRED пот! Prepare a contribution income statement for July. b. Prepare a cost-volume-profit graph. Label the horizontal axis in units with a maximum value of 8,000. Label the vertical axis in dollars with a maximum value of $1,000,000. Draw a verti- cal line on the graph for the current (4,000) unit sales level, and label total variable costs, total fixed costs, and total profits at 4,000 units.

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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