Garner Manufacturing Inc. sold 20,000 units and recorded sales of $800,000 for the first quarter of 2012. In making the sales, the company incurred the following costs and expenses.
|
Variable |
Fixed |
|
|
Cost of goods sold |
$250,000 |
$110,000 |
|
Selling expenses |
100,000 |
25,000 |
|
Administrative expenses |
82,000 |
73,000 |
(a) Prepare a CVP income statement for the quarter ended March 31, 2012.
(b) Compute the contribution margin per unit.
(c) Compute the contribution margin ratio.