1. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 15-1 Cost Characteristics That Influence Decisions

2. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 2 LESSON 15-1 ABBREVIATED INCOME STATEMENT page 445

3. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 3 LESSON 15-1 Cost of Merchandise Sold Total Cost ÷Units Sold= Cost of Merchandise Sold Total Cost $118,800.00 ÷ 36,000 = $3.30 CALCULATING COST OF MERCHANDISE SOLD UNIT COST page 445

4. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 4 LESSON 15-1 VARIABLE COST CHARACTERISTICS page 446

5. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 5 LESSON 15-1 FIXED COSTS page 446

6. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 6 LESSON 15-1 GROSS PROFIT INCOME STATEMENT page 447

7. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 7 LESSON 15-1 CONTRIBUTION MARGIN INCOME STATEMENT page 447

8. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 8 LESSON 15-1 CONTRIBUTION MARGIN PER UNIT page 448 Total Contribution Margin ÷Units Sold= Contribution Margin per Unit $27,000.00 ÷ 36,000 = $0.75

9. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 9 LESSON 15-1 TERMS REVIEW total costs unit cost variable costs fixed costs contribution margin page 450