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.
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Broadway, Inc.
Contribution Margin Income statement For the year ended December 31
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Sales (20,000 units) Less variable costs:
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Cost of goods sold
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$8,000,000
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$16,000,000
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Selling, administrative, and general
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4,000,000
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Total variable costs
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12,000,000
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Contribution margin Less fixed costs:
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Overhead
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$1,200,000
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$ 4,000,000
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Selling, administrative, and general
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800,000
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Total fixed costs
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2,000,000
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Operating income
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$ 2,000,000
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