Question

Hamby Inc. has sales of $2,065,000 for the first quarter of 2020. In making the sales, the company incurred the following costs and expenses.

Variable Fixed

Cost of goods sold $772,000 $620,000
Selling expenses 97,900 62,800
Administrative expenses 84,700 69,000

Required:
Prepare a CVP income statement for the quarter ended March 31, 2017.

Answer 1

See below

Step-by-step explanation:

Sales

$2,065,000

Less Variable costs:

Cost of goods sold

($772,000)

Selling expenses

(97,900)

Administrative expenses

($84,700)

Contribution

$1,110,400

Less fixed costs;

Cost of goods sold

($620,000)

Selling expenses

($62,800)