Calculate the selling price per unit

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Question - 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.

Sedona, Inc. Contribution Margin Income Statement For the Year Ended December 31 Sales

Sales (20,000 units)

 

$16,000,000

Less variable costs

 

 

Cost of goods sold

$8,000,000

 

Selling, administrative, and general

4,000,000

 

Total variable costs

 

12,000,000

Contribution margin

 

$4,000,000

Less fixed costs

 

 

Overhead

$1,200,000

 

Selling, administrative, and general

800,000

 

Total fixed costs

 

2,000,000

Operating income

 

$2,000,000

Reference no: EM133079639

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