Question

When I try to make a CVP income statement with the following data I end up with a negative net income. What am I doing wrong?

Variable costs
Particulars	Amount
Direct material (300000*0.80)	240000
Direct labour(300000*2)	600000
Packaging (300000*0.75)	225000
Variable manufacturing overhead(300000*1.2)	360000
Sales commission (300000*0.80)	240000
Shipping(300000*0.50)	150000
Total variable cost	1815000
Fixed costs
Particulars	Amount
Fixed manufacturing overhead	540000
Fixed advertising and promotion	180000
Fixed selling and administration	270000
Total fixed costs	990000

Sales 2,400,000 total, $8 per unit. Variable costs 1,815,000 total and 6.05 per unit. Contribution Margin 585,000 or 2 per unit. Fixed costs $990,000. Net Loss 405,000. I'm not supposed to have a net loss.

Answer 1

**variable cost of sales :.80+2+.75+2 = 4.75

Income statment
sales		2,400,000
less:variable cost
variable cost of sales [4.75*300000]	1425000
variable selling [300000*1.3]	390000
Total variable cost		1815000
contribution margin		585000
less:fixed cost
Fixed manufacturing overhead
Fixed advertising and promotion	540000
Fixed selling and administration	180000
Total fixed cost	270000	(990000)
Net Income /(loss)		(405000)

***As per Information/data given there will be a loss of 405000..Is there any other data provided.