Question

The following information is available for Sunland Company:

Sales $590000
Total fixed expenses $150000
Cost of goods sold 390000
Total variable expenses 340000

A CVP income statement would report
a. contribution margin of $250000.
b. contribution margin of $440000.
c. gross profit of $250000.
d. gross profit of $200000.

Answer 1

Contribution margin= 250,000

Step-by-step explanation:

Giving the following information:

Sales $590,000

Total fixed expenses $150,000

Cost of goods sold $390,000

Total variable expenses $340,000

A CVP income statements provides the following structure:

Sales= 590,000

Total variable costs= (340,000)

Contribution margin= 250,000