Calculate selling price per unit and variable costs per unit

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Reference no: EM13889999

Using the data in the contribution margin income statement for Broadway, Inc., that follows, calculate (a) selling price per unit, (b) variable costs per unit, and (c) break- even point in units and in sales dollars.

Broadway, Inc.

Contribution Margin Income statement For the year ended December 31

Sales (20,000 units) Less variable costs:



Cost of goods sold                                     

$8,000,000

$16,000,000

Selling, administrative, and general

4,000,000


Total variable costs


12,000,000

Contribution margin Less fixed costs:



Overhead                 

$1,200,000

$  4,000,000

Selling, administrative, and general

800,000


Total fixed costs


2,000,000

Operating income


$  2,000,000

Reference no: EM13889999

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