Question

Question 1 Cedar Grove Industries produces and sells a cell phone-operated home security control. Information regarding the costs and sales of security controls during May 2017 are provided below. Unit selling price of security control $45 Unit variable costs $27 Total monthly fixed costs $135,000 Units sold 8,500 Prepare a CVP income statement for Cedar Grove Industries for the month of May. Provide per unit values and total values. Cedar Grove Industries CVP Income Statement Total Per Unit $ $ $ $

Answer 1

Ans.                                          CVP Income Statement (in $) for Cedar Grove Industries

                                          Sales value                Per unit value

Sales(8500X45)                   382500                       45

Variable cost(8500X27)        (229500)                      27

Contribution margin        153000                       18                         

Fixed Exp.                         (135000)

Net profit                             18000

Contribution margin ratio = 153000/382500 = 40%