Question

The following information is available for Waterway Industries: Sales $640000 Total fixed expenses $150000 Cost of goods sold 440000 Total variable expenses 390000 A CVP income statement would report contribution margin of $490000. gross profit of $250000. gross profit of $200000. contribution margin of $250000.

Answer 1

The CVP Income Statement will Report a Contribution Margin of $250,000

Step-by-step explanation:

The question is incomplete, Therefore, the completion is as follows:

A CVP Income Statement would report?

A CVP income statement replaces the gross profit computation in its report with the computation of the Contribution Margin.

The CVP report will therefore report as follows

The sales = $640,000

The Total Variable Expenses =$390,000

The Contribution Margin therefore =

The Sales - Total Variable Expenses

= $640,000- $390,000

= $250,000

Therefore, the CVP Income Statement will Report a Contribution Margin of $250,000