Question

Sandhill Inc. had sales of $2,340,000 for the first quarter of 2020. In making the sales, the company incurred the following costs and expenses.

		Variable		Fixed
Cost of goods sold		$935,000		$461,000
Selling expenses		74,000		79,000
Administrative expenses		131,000		119,000

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

SANDHILL 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

Sales	2,340,000
Variable costs (935,000+74,000+131,000)	1,140,000
Contribution margin	1,200,000
Fixed costs (461,000+79,000+119,000)	659,000
Net operating income	541,000