CVP Income Statement Ampco Industries produces and sells a cell phone-operated thermostat. Information regarding the costs and sales of thermostats during September 2020 are provided below

Question

CVP Income Statement

Ampco Industries produces and sells a cell phone-operated thermostat. Information regarding the costs and sales of thermostats during September 2020 are provided below

Unit selling price of thermostat	$85
Unit variable costs	$32
Total monthly fixed costs	$190,000
Units sold	4,000

Prepare a CVP income statement for Ampco Industries for the month of September. Provide per unit values and total values.

Accepted Answer

Ampco Industries CVP Income Statement For the Month Ended September 30, 2020
	Total	Per Unit
Sales	$340,000	$85
Variable costs	128,000	32
Contribution margin	212,000	$53
Fixed costs	190,000
Net income	$22,000

ACTION PLAN
• Provide a heading with the name of the company, name of statement, and period covered.
• Subtract variable costs from sales to determine contribution margin.
Subtract fixed costs from contribution margin to determine net income.
• Express sales, variable costs and contribution margin on a per unit basis.

Related exercise material: BE5.6, BE5.7, DO IT! 5.3, and E5.7.

Question 5.DI.3: CVP Income Statement Ampco Industries produces and sells a c...

This Question has been Answered.

Already have an account?

Login

Related Answered Questions