Question

Sales $350,000 Cost of goods sold $120,000 Total fixed expenses $60,000 Total variable expenses $100,000 Which amount would you find on Chap's CVP income statement?

Answer 1

Answer:

$190,000

Explanation:

A cost volume profit (CVP) income statement is a type of managerial accounting report that is used for internal purposes only.

CVP income statement:

total sales                          = $350,000

total variable expenses    = ($100,000)

contribution margin          = $250,000

total fixed costs                = ($60,000)  

net income                        = $190,000

A CVP income statement is an analysis tool used to compare variable and fixed costs.

Answer 2

Answer:

Net operating income= $70,000

Explanation:

Giving the following information:

Sales $350,000 Cost of goods sold $120,000 Total fixed expenses $60,000 Total variable expenses $100,000

Income statenent:

Sales= 350,000

COGS= (120,000)

Total variable expenses= (100,000)

Contribution margin= 130,000

Total fixed expense= (60,000)

Net operating income= 70,000