Prepare CVP income statements. Olsen Company has the following information available for September 2019. Unit selling price of video game consoles $ 400 Unit variable costs $ 275 Total fixed costs $52,000 Units sold 600 Instructions (a) Compute the contribution margin per unit. (b) Prepare a CVP income statement that shows both total and per unit amounts.
Prepare CVP income statements. Olsen Company has the following information available for September 2019. Unit selling price of video game consoles $ 400 Unit variable costs $ 275 Total fixed costs $52,000 Units sold 600 Instructions (a) Compute the contribution margin per unit. (b) Prepare a CVP income statement that shows both total and per unit amounts.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
- Prepare CVP income statements.
Olsen Company has the following information available for September 2019.
|
Unit selling price of video game consoles |
$ 400 |
|
Unit variable costs |
$ 275 |
|
Total fixed costs |
$52,000 |
|
Units sold |
600 |
Instructions
|
(a) |
Compute the contribution margin per unit. |
|
(b) |
Prepare a CVP income statement that shows both total and per unit amounts. |
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