The following information is available for Chap Company: $\begin{array}{ll}
\text {Sales }&\$350,000\
\text {Total fixed expenses. }&\$60,000\
\text {Cost of goods sold }&120,000\
\text {Total variable expenses }&100,000\
\end{array}$
Which amount would you find on Chap's CVP income statement?

Question

The following information is available for Chap Company: $\begin{array}{ll}
\text {Sales }&\$350,000\
\text {Total fixed expenses. }&\$60,000\
\text {Cost of goods sold }&120,000\
\text {Total variable expenses }&100,000\
\end{array}$
 Which amount would you find on Chap's CVP income statement?

Quizplus · Accepted Answer

Contribution margin is sales minus variable expenses. In this case, sales are $350,000 and variable expenses are $100,000, so the contribution margin is $250,000.

The Following Information Is Available for Chap Company Which Amount Would You Find on Chap's CVP Income Statement