Kipling Company has sales of $1500000 for the first quarter of 2016. In making the sales the company incurred the following costs and expenses. $$\begin{array} { l r r }
& \text { Variable } & \text { Fixed } \
\hline \text { Product costs } & \$ 500,000 & \$ 550,000 \
\text { Selling expenses } & 100,000 & 75,000 \
\text { Administrative expenses } & 80,000 & 67,000
\end{array}$$ Instructions
Calculate net income under CVP for 2016.

Question

Kipling Company has sales of $1500000 for the first quarter of 2016. In making the sales the company incurred the following costs and expenses. $$\begin{array} { l r r } 
& \text { Variable } & \text { Fixed } \
\hline \text { Product costs } & \$ 500,000 & \$ 550,000 \
\text { Selling expenses } & 100,000 & 75,000 \
\text { Administrative expenses } & 80,000 & 67,000
\end{array}$$ Instructions
Calculate net income under CVP for 2016.

Quizplus · Accepted Answer

The Answer of Kipling Company has sales of $1500000 for the first quarter of 2016. In making the sales the company incurred the following costs and expenses. $$\begin{array} { l r r } 
& \text { Variable } & \text { Fixed } \
\hline \text { Product costs } & \$ 500,000 & \$ 550,000 \
\text { Selling expenses } & 100,000 & 75,000 \
\text { Administrative expenses } & 80,000 & 67,000
\end{array}$$ Instructions
Calculate net income under CVP for 2016.

Kipling Company Has Sales of $1500000 for the First Quarter