Problem
Kipling Company has sales of $1,500,000 for the first quarter of 2016. In making the sales, the company incurred the following costs and expenses.
|
Variable
|
Fixed
|
|
Product costs
|
$500,000
|
$550,000
|
|
Selling expenses
|
100,000
|
75,000
|
|
Administrative expenses
|
80,000
|
67,000
|
Calculate net income under CVP for 2016.