Kohler Company developed the following information for the product it sells:
For the year ended December 31, 2010, Kohler Company produced and sold 100,000 units of product.
Instructions
(a) Prepare a CVP income statement using the contribution margin format for Wayman Company for 2010.
(b) What was the company's break-even point in units in 2010? Use the contribution margin technique.
(c) What was the company's margin of safety in dollars in 2010?

Question

Kohler Company developed the following information for the product it sells:  
For the year ended December 31, 2010, Kohler Company produced and sold 100,000 units of product.
Instructions
(a) Prepare a CVP income statement using the contribution margin format for Wayman Company for 2010.
(b) What was the company's break-even point in units in 2010? Use the contribution margin technique.
(c) What was the company's margin of safety in dollars in 2010?

Quizplus · Accepted Answer

The Answer of Kohler Company developed the following information for the product it sells:  
For the year ended December 31, 2010, Kohler Company produced and sold 100,000 units of product.
Instructions
(a) Prepare a CVP income statement using the contribution margin format for Wayman Company for 2010.
(b) What was the company's break-even point in units in 2010? Use the contribution margin technique.
(c) What was the company's margin of safety in dollars in 2010?

Kohler Company Developed the Following Information for the Product It