BE6-2 Hamby Inc. has sales of $2,000,000 for the rst quarter of 2017. In making the sales, the company incurred the following costs and expenses.

Variable Fixed Cost of goods sold $760,000 $600,000 Selling expenses 95,000 60,000 Administrative expenses 79,000 66,000

Prepare a CVP income statement for the quarter ended March 31, 2017.

BE6-5 For Rivera Company, variable costs are 70% of sales, and xed costs are $210,000. Managements net income goal is $60,000. Compute the required sales needed to achieve managements target net income of $60,000. (Use the mathematical equation approach.)

BE6-6 For Kosko Company, actual sales are $1,200,000 and break-even sales are $960,000. Compute (a) the margin of safety in dollars and (b) the margin of safety ratio.