Question

The following information is available for Crane Company: Sales $480000 Total fixed expenses $150000 Cost of goods sold 290000 Total variable expenses 260000 A CVP income statement would report __________.

Answer 1

Answer:

The CVP income statement would report a contribution margin $220000.

Explanation:

CVP income statement

sales                               $480000

total variable cost          ($260000)

contribution margin       $220000

total fixed expenses      ($150000)

operating income            $70000

Therefore, The CVP income statement would report a contribution margin $220000.