Pharoah Company has the following information available for September 2020. Unit selling price of video game consoles $520 Unit variable costs Total fixed costs Units sold a. Compute the unit contribution margin. $364 $48,360 600 b. Prepare a CVP income statement that shows both total and per unit amounts. c. Compute Pharoah's break-even point in units. d. Prepare a CVP income statement for the break- even point that shows both total and per unit amounts.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 5PB: Wellington, Inc., reports the following contribution margin income statement for the month of May....
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Pharoah Company has the following information
available for September 2020.
Unit selling price of video game consoles $520
Unit variable costs
Total fixed costs
Units sold
a. Compute the unit contribution margin.
$364
$48,360
600
b. Prepare a CVP income statement that shows both
total and per unit amounts.
c. Compute Pharoah's break-even point in units.
d. Prepare a CVP income statement for the break-
even point that shows both total and per unit
amounts.
Transcribed Image Text:Pharoah Company has the following information available for September 2020. Unit selling price of video game consoles $520 Unit variable costs Total fixed costs Units sold a. Compute the unit contribution margin. $364 $48,360 600 b. Prepare a CVP income statement that shows both total and per unit amounts. c. Compute Pharoah's break-even point in units. d. Prepare a CVP income statement for the break- even point that shows both total and per unit amounts.
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