Question

Cullumber 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 $47 Unit variable costs $27 Total monthly fixed costs $128,000 Units sold 7,800 Prepare a CVP income statement for Cullumber Industries for the month of May. Provide per unit values and total values.

Answer 1

Net income = $28,000

Step-by-step explanation:

Total units sold = 7,800

Fixed cost = $128,000

Total sales revenue = $47 × 7,800 = $366,600

Total variable cost = $27 × 7,800 = $210,600

So, CVP income statement are as follows,

Particular per unit Total

Net sales (a) $47 $366,600

Variable cost (Less) (b) $27 $210,600

Contribution margin (c=a-b) $20 $156,000

Fixed cost (d) $128,000

Net income (c-d) $28,000