ACC 560 MART Education Terms/acc560mart.com ACC 560 MART Education Terms/acc560mart.com | Page 21

Salaries

$5,900 per month

FIXED COST

Utilities

$1,100 per month

FIXED COST

Depreciation $1,000 per month

FIXED COST

Maintenance

$100 per month

FIXED COST

Maid service

$14 per room

VARIABLE

Other costs

$28 per room

VARIABLE

Instructions: Determine the inn's break-even point in
(a) number of rented rooms per month and
(b) dollars.
E5-13
Billings Company has the following information available for
September 2017.
Unit selling price of video game consoles

$ 400

Unit variable costs

$ 280

Total fixed costs

$54,000

Units sold

600

Instructions
A. Compute the unit contribution margin.
B. Prepare a CVP income statement that shows both total and per
unit amounts.
C. Compute Billings' break-even point in units.