Amanda Inc. sold 10,000 units and recorded sales of $400,000 for the first month of 2014. In making the sales, the company incurred the following costs and expenses.
|
Variable
|
Fixed
|
|
Cost of goods sold
|
$184,000
|
$70,000
|
|
Selling expenses
|
40,000
|
30,000
|
|
Administrative expenses
|
16,000
|
50,000
|
(a) Prepare a CVP income statement for the month ended January 31, 2014.
(b) Compute the contribution margin per unit.
(c) Compute the contribution margin ratio.