Answer:
.................................................................................................
Particulars Unit cost Amount
Sales income $ 47 $ 376,000
Less: Variable cost $ 24 $ 192,000
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Contribution Margin $ 13 $ 184,000
Less: Fixed cost $ 124,000
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Net income $ 60,000
...................................................................................................
Explanation:
Given:
Unit selling price = $ 47
Variable cost = $ 24
Total monthly fixed cost = $ 124,000
Number of units sold = 8,000
CVP income statement for Cedar Grove Industries for the month of May is as:
.................................................................................................
Particulars Unit cost Amount
Sales income $ 47 $ 376,000
Less: Variable cost $ 24 $ 192,000
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Contribution Margin $ 13 $ 184,000
Less: Fixed cost $ 124,000
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Net income $ 60,000
...................................................................................................
here, the amount is for the total unit i.e 8000 units multiplied by the unit cost
