The following information is available for Wade Corp.: $$\begin{array} { l r l r }
\text { Sales } & \$ 580,000 & \text { Total fixed expenses } & \$ 150,000 \
\text { Cost of goods sold } & 390,000 & \text { Total variable expenses } & 360,000
\end{array}$$ A CVP income statement would report

Question

The following information is available for Wade Corp.: $$\begin{array} { l r l r } 
\text { Sales } & \$ 580,000 & \text { Total fixed expenses } & \$ 150,000 \
\text { Cost of goods sold } & 390,000 & \text { Total variable expenses } & 360,000
\end{array}$$ A CVP income statement would report

Quizplus · Accepted Answer

Gross profit is calculated as Sales - Cost of Goods Sold, which is $580,000 - $390,000 = $190,000. However, the contribution margin is calculated as Sales - Total Variable Expenses, which is $580,000 - $360,000 = $220,000. Therefore, the correct answer is the contribution margin of $220,000.

The Following Information Is Available for Wade Corp A CVP Income Statement Would Report A) Gross Profit of l

The Following Information Is Available for Wade Corp A CVP Income Statement Would Report
A) Gross Profit of l