Question

Oriole Inc. had sales of $2,260,000 for the first quarter of 2020. In making the sales, the company incurred the following costs and expenses.

		Variable		Fixed
Cost of goods sold		$925,000		$461,000
Selling expenses		74,000		91,000
Administrative expenses		109,000		100,000

Prepare a CVP income statement for the quarter ended March 31, 2020.

ORIOLE INC. CVP Income Statement
select an income statement item                                                          Administrative ExpensesContribution MarginCost of Goods SoldFixed CostsGross ProfitNet Income/(Loss)SalesSelling ExpensesVariable Costs		$enter a dollar amount
select an income statement item                                                          Administrative ExpensesContribution MarginCost of Goods SoldFixed CostsGross ProfitNet Income/(Loss)SalesSelling ExpensesVariable Costs		enter a dollar amount
select a summarizing line for the first part                                                          Administrative ExpensesContribution MarginCost of Goods SoldFixed CostsGross ProfitNet Income/(Loss)SalesSelling ExpensesVariable Costs		enter a total amount for the first part
select an income statement item                                                          Administrative ExpensesContribution MarginCost of Goods SoldFixed CostsGross ProfitNet Income/(Loss)SalesSelling ExpensesVariable Costs		enter a dollar amount
select a closing name for this statement                                                          Administrative ExpensesContribution MarginCost of Goods SoldFixed CostsGross ProfitNet Income/(Loss)SalesSelling ExpensesVariable Costs		$enter a total net income or loss amount

Answer 1

Description	Amount
Sale revenue	$                2,260,000
Less: variable costs
Cost of goods sold	$                  (925,000)
Selling expense	$                    (74,000)
Administrative expense	$                  (109,000)
Contribution	$                1,152,000
Less: fixed costs
Cost of goods sold	$                  (461,000)
Selling expense	$                    (91,000)
Administrative expense	$                  (100,000)
Net Income	$                    500,000