Required information
The following information applies to the questions displayed below.
Praveen Company manufactures and markets a number of rope products. Management is considering the future of Product XT a special rope for hang gliding that has not been as profitable as planned. Because Product XT is manufactured and marketed independently of the other products, its total costs can be precisely measured. Next year's plans call for a $ selling price per unit. Its fixed costs for the year are expected to be $ Variable costs for the year are expected to be $ per unit.
Prepare a contribution margin income statement for Product XT at the breakeven point.
tablePRAVEEN COMPANYContribution Margin Income Statement at BreakEven Product XTUnits,$ per unit,TotalSales,,,Less:Variable cost,,,Contribution margin,,,Less:Fixed costs,,,Income
