Contribution Margin Income Statement and C-V-P Analysis
Using the data in the contribution margin income statement for Sedona, Inc., that appears at the top of the next page, calculate (1) selling price per unit, (2) variable costs per unit, and (3) breakeven point in units and in sales dollars.
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Sedona, Inc. Contribution Margin Income Statement For the Year Ended December 31 |
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Sales (10,000 units) |
$16,000,000 |
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Less variable costs |
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Cost of goods sold |
8,000,000 |
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Selling, administrative, and general |
$4,000,000 |
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Total variable costs |
12,000,000 |
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Contribution margin |
$4,000,000 |
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Less fixed costs |
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Overhead |
$1,200,000 |
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Selling, administrative, and general |
800,000 |
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Total fixed costs |
2,000,000 |
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Operating income |
$2,000,000 |
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