Question

Blossom Inc. had sales of $2,300,000 for the first quarter of 2020. In making the sales, the company incurred the following costs and expenses.
Variable Fixed
Cost of goods sold $936,000 $473,000
Selling expenses 119,000 71,000
Administrative expenses 116,000 120,000
Prepare a CVP income statement for the quarter ended March 31, 2020
BLOSSOM INC.
CVP Income Statement
For the Quarter Ended March 31, 2020

Answer 1

Answer:

          CVP Income Statement

Sales revenue                   2,300,000

Less: Total variable cost   1,171,000

Contribution margin           1,129,000

Less: Fixed cost                 664,000

Net Operating income     $465,000

Note:

Cost of goods sold    936,000  

Selling expenses       119,000

Admin expense         116,000

Total variable cost    1,171,000

Cost of goods sold       473,000

Selling expenses         71,000

Admin expense           120,000

Total Fixed cost           664,000