Question

A Candy Company plans to sell 3,000 candy bars with the following information:

Financial Information

Selling price per candy bar......................................................................... $1.00

Variable cost of goods sold per candy bar............................................... $ .40

Fixed manufacturing cost per year............................................................. $12,000

Variable cost of goods sold per candy bar.................................................... $ .30

Variable selling and administrative expense per candy bar...................... $ .05

Fixed selling and administrative expense.................................................. $ 4,000

prepare a CVP formatted income statement

Answer 1

Income Statement
	p.u		amount
sales (1*3000)	1		3000
less: variable cost
variable cost of goods sold (0.40*3000)	0.4	1200
variable cost of goods sold (0.30*3000)	0.3	900
Variable selling & administrative cost(.05*3000)	0.05	150	2250
Contribution margin	0.25		750
less: fixed cost :
fixed manufacturing cost		12000
fixed selling & administrative cost		4000	16000
net income (loss)			-15250