Question - Best Harmonica Company manufactures and sells harmonicas to distributors. The model they produce sells to the distributors for $8.00 each. Following are cost estimates:
Sales - $3,480,000
Direct materials - 543,750
Direct labor - 761,250
Manufacturing overhead-variable - 152,250
Manufacturing overhead-fixed - 640,000
Selling expenses-variable - 78,300
Selling expenses-fixed - 300,000
Administrative expenses-variable - 47,850
Manufacturing overhead-fixed - 185,000
Prepare a CVP income statement based on these estimates. First complete the Sales portion.