Taveras Industries developed the following information for the product it sells:
For the year ended December 31, 2016, Taveras produced and sold 100,000 units of product.
Instructions
(a) Prepare a CVP income statement using the contribution margin format for Taveras Industries for 2016.
(b) What was the company's break-even point in units in 2016? Use the contribution margin technique.
(c) What was the company's margin of safety in dollars in 2016?

Question

Taveras Industries developed the following information for the product it sells:  
For the year ended December 31, 2016, Taveras produced and sold 100,000 units of product.
Instructions
(a) Prepare a CVP income statement using the contribution margin format for Taveras Industries for 2016.
(b) What was the company's break-even point in units in 2016? Use the contribution margin technique.
(c) What was the company's margin of safety in dollars in 2016?

Quizplus · Accepted Answer

The Answer of Taveras Industries developed the following information for the product it sells:  
For the year ended December 31, 2016, Taveras produced and sold 100,000 units of product.
Instructions
(a) Prepare a CVP income statement using the contribution margin format for Taveras Industries for 2016.
(b) What was the company's break-even point in units in 2016? Use the contribution margin technique.
(c) What was the company's margin of safety in dollars in 2016?

Taveras Industries Developed the Following Information for the Product It