On the CVP graph, where is the breakeven point shown? Why?
On the CVP graph, the breakeven point is the point where the line of sales revenue and total costs intersects.
The point where the entity is neither a profit nor not at a loss is known as the breakeven point.
The point where the line of sales revenue and total costs intersects is known as the breakeven point because at this level of sales; the operating profit is zero means total sales are equal to the total cost.
Preparing a contribution margin income statement
Gabelman Company sells a product for $95 per unit. Variable costs are $40 per unit, and fixed costs are $2,200 per month. The company expects to sell 570 units in September. Prepare an income statement for September using the contribution margin format
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