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8 February, 22:58

The following information is available for Waterway Industries: Sales $640000 Total fixed expenses $150000 Cost of goods sold 440000 Total variable expenses 390000 A CVP income statement would report contribution margin of $490000. gross profit of $250000. gross profit of $200000. contribution margin of $250000.

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  1. 9 February, 02:11
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    The CVP Income Statement will Report a Contribution Margin of $250,000

    Explanation:

    The question is incomplete, Therefore, the completion is as follows:

    A CVP Income Statement would report?

    A CVP income statement replaces the gross profit computation in its report with the computation of the Contribution Margin.

    The CVP report will therefore report as follows

    The sales = $640,000

    The Total Variable Expenses = $390,000

    The Contribution Margin therefore =

    The Sales - Total Variable Expenses

    = $640,000 - $390,000

    = $250,000

    Therefore, the CVP Income Statement will Report a Contribution Margin of $250,000
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