The following information is available for wildhorse company:
Sales
$455,000
Cost of goods sold
110,000
Total fixed expenses
80,000
Total variable expenses
120,000
Which amount would you find on Jimmy's CVP income statement?
Contribution margin is computed as sales less total variable expenses.
The CVP income statement will show Sales $450,000 - Total variable expenses $120,000 = Contribution margin of $330,000