Question

Blossom Industries produces and sells a cell phone-operated home security control. Information regarding the costs and sales of security controls during May 2020 are provided below. Unit selling price of security control $45 Unit variable costs $22 Total monthly fixed costs $121,000 Units sold 7,500 Prepare a CVP income statement for Blossom Industries for the month of May. Provide per unit values and total values.

Answer 1

Explanation:

                          Total                                   Per Unit

Sales                          $  337,500                            $  45

Less: Variable Cost  $  165,000                            $  22

Contribution margin  $  172,500                                    $  23

Less : Fixed Cost          $  121,000  

Profit                          $  51,500  

Sales Total = $ 45 * 7,500 Units

Variable Cost Total = $ 22 * 7,500 Units

Contribution Margin Total = $ 23 * 7500 Units