K Christel, Inc. sold 20,000 units and recorded sales of $800,000 for the first quarter of 2011. 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, 2011.
(b) Compute the contribution margin per unit.
(c) Compute the contribution margin ratio.