I need an explanation for this Accounting question to help me study.
If a question requires mathematical calculations, in order to meet the word count quota of 1000, after solving please explain the calculations. Apply research information from other websites or periodicals.
1. Prepare a contribution margin format income statement. China Imports, Inc., sold 18,000 units in May. Per unit selling price and variable expense were $25 and $17, respectively. Fixed expenses incurred in May totaled $120,000. Require: Prepare the May income statement for China Imports, Inc., in the contribution margin format.
2. CVP analysis Current operating income for Bay Area Cycles Co. is $70,000. Selling price per unit is $100, the contribution margin is 35% and fixed expense is $280,000. Required: Calculate Bay Area Cycles per unit variable expense and contribution margin. How many units are currently being sold.
3. Break-even analysis Refer to question number 2 for Bay Area Cycles. Required: Calculate Bay Area Cycles break-even in units and sales dollars.