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Problem 11-28 Determining the Break-even Point and Preparing a Contribution Margin Income Statement

Problem 11-28 Determining the Break-even Point and Preparing a Contribution Margin Income Statement
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ACCOUNTING

Survey of Accounting
Second (2nd) Edition
Thomas Edmonds, Philip Olds, Frances McNair, Bor-Yi Tsay
ACC 201 ACC/201 Accounting 201

Problem 11-28 Determining the Break-even Point and Preparing a Contribution Margin Income Statement

Blackmon Manufacturing Company makes a product that it sells for $50 per unit. The company incurs variable manufacturing costs of $14 per unit. Variable selling expenses are $6 per unit, annual fixed manufacturing costs are $189,000, and fixed selling and administrative costs are $141,000 per year.

a. Determine the break even point in units and dollars
b. Confirm your results by preparing a contribution margin income statement for the break-even sales volume.

Check:
a. 11,000 units

 

FILE: MS WORD

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