Appliance Sales Corporation sells all types of appliances. In addition, it offers purchasers of its appliances the option of purchasing repair contracts. During the current year, Appliance estimates that repairs totaling $13,100 will be made under the contracts sold during the current year. Actual repair costs are $7,500 related to last year?s contracts and $2,450 on contracts sold during the contract year. How much repair cost can Appliance deduct during the current year?
Using the data in the contribution income statement for Sedona, Inc., that appears below, calculate
(1) Selling price per unit,
(2) Variable costs per unit,
(3) Breakeven point in sales dollars.
Sedona, Inc.
Contribution Income Statement
For the Year Ended December 31