Bramble Inc. has sales of $2,059,000 for the first quarter of 2020. In making the sales, the company incurred the following costs and expenses. Variable Fixed Cost of goods sold $765,000 $607,000 Selling expenses 96,500 66,000 Administrative expenses 83,700 73,000 Prepare a CVP income statement for the quarter ended March 31, 2020.

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Business

Giada Foley

22 June, 11:09

Bramble Inc. has sales of $2,059,000 for the first quarter of 2020. In making the sales, the company incurred the following costs and expenses. Variable Fixed Cost of goods sold $765,000 $607,000 Selling expenses 96,500 66,000 Administrative expenses 83,700 73,000 Prepare a CVP income statement for the quarter ended March 31, 2020.

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Lainey Morgan · Answer 1

The preparation of the CVP income statement is shown below:

Bramble Inc

CVP income statement

For the quarter ended March 31, 2020

Sales (A) $2,059,000

Variable cost

Cost of goods sold $765,000

Selling expenses $96,500

Administrative expenses $83,700

Total Variable cost (B) $945,200

Contribution margin (A-B) / C $1,113,800

Fixed expenses

Cost of goods sold $607,000

Selling expenses $66,000

Administrative expenses $73,000

Total fixed cost (D) $746,000

Net income (C-D) $367,800