using the data in the contribution margin income statement for sedona inc 544661

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

Sales (10,000 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

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