Answer:
Sales 2,200,000
Less Variable Costs:
Cost of goods sold (920,000)
Selling expenses (70,000)
Administrative expenses (86,000)
Contribution 1,124,000
Less Fixed Costs
Cost of goods sold (440,000)
Selling expenses (45,000)
Administrative expenses (98,000)
Net Income 541,000
Explanation:
A CVP income statement is also known as a Variable Costing Income Statement and is written up as follows :
Sales 2,200,000
Less Variable Costs:
Cost of goods sold (920,000)
Selling expenses (70,000)
Administrative expenses (86,000)
Contribution 1,124,000
Less Fixed Costs
Cost of goods sold (440,000)
Selling expenses (45,000)
Administrative expenses (98,000)
Net Income 541,000
