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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.

Sagot :

Answer:

Net income = $28,000

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

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