Question

Naylor Manufacturing Inc. sold 8,370 units and recorded sales of $502,200 for the first month of 2020. In making the sales, the company incurred the following costs and expenses.

		Variable		Fixed
Cost of goods sold		$171,900		$63,000
Selling expenses		68,300		34,700
Administrative expenses		10,900		37,800

Prepare a CVP income statement for the month ended January 31, 2020.

Answer 1

Answer-

NAYLOR MANUFACTURING INC.
CVP INCOME STATEMENT
FOR THE YEAR ENDING JANUARY 31,2020
PARTICULARS	AMOUNT	AMOUNT
	$	$
Sales		502200
Less- Variable costs
Cost of goods sold	171900
Selling expenses	68300
Administrative expenses	10900
Total variable costs		251100
Contribution margin		251100
Less- Fixed costs
Cost of goods sold	63000
Selling expenses	34700
Administrative expenses	37800
Total fixed costs		135500
Net Income		115600