Question

Sandhill Industries produces and sells a cell phone-operated home security control. Information regarding the costs and sales of security controls during May 2020 are provided below. Unit selling price of security control $45 Unit variable costs $22 Total monthly fixed costs $124,000 Units sold 8,400 Prepare a CVP income statement for Sandhill Industries for the month of May. Provide per unit values and total values.

Answer 1

Answer and Explanation:

The presentation of the CVP income statement for Cedar Grove Industries for the month of May is shown below;

Particulars Units Amount

Net sales $45 $378,000 (8,400 units × $45)

Less:

Variable expense $22 -$184,800 (8,400 units × $22)

Contribution margin $23 $193,200

Less:

Fixed cost -$124,000

Net income $69,200