Cullumber 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 $941,000 $474,000 Selling expenses 104,000 77,000 Administrative expenses 108,000 102,000 Prepare a CVP income statement for the quarter ended March 31, 2020.

Question

Teagan Nguyen

Business

11 December, 16:27

Cullumber 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 $941,000 $474,000 Selling expenses 104,000 77,000 Administrative expenses 108,000 102,000 Prepare a CVP income statement for the quarter ended March 31, 2020.

+3

Answers (1)

Know the Answer?

Shayla · Answer 1

Net Income $ 494,000

Explanation:

Cullumber Inc.

CVP income statement

For the Quarter Ended March 31, 2020.

Sales of $2,300,000

Variable

Cost of goods sold $941,000

Selling expenses 104,000

Administrative expenses 108,000

Total Variable Expenses $1153,000

Contribution Margin $ 1147,000

Fixed

Cost of goods sold $474,000

Selling expenses 77,000

Administrative expenses 102,000

Total Fixed Costs $ 653,000

Net Income $ 494,000