Brief Exercise 18-7

Radial Inc. had sales of $2,400,000for the first quarter of 2014. In making the sales, the company incurred the costs and expenses shown below.

Variable	Fixed
Cost of goods sold	$920,000	$440,000
Selling expenses	70,000	45,000
Administrative expenses	86,000	98,000

Prepare a CVP income statement for the quarter ended March 31, 2014.

RADIAL INC. CVP Income Statement For the Quarter Ended March 31, 2014
Administrative ExpensesContribution MarginCost of Goods SoldFixed CostsGross ProfitNet Income/(Loss)SalesSelling ExpensesVariable Costs	$
Administrative ExpensesContribution MarginCost of Goods SoldFixed CostsGross ProfitNet Income/(Loss)SalesSelling ExpensesVariable Costs
Administrative ExpensesContribution MarginCost of Goods SoldFixed CostsGross ProfitNet Income/(Loss)SalesSelling ExpensesVariable Costs
Administrative ExpensesContribution MarginCost of Goods SoldFixed CostsGross ProfitNet Income/(Loss)SalesSelling ExpensesVariable Costs
Administrative ExpensesContribution MarginCost of Goods SoldFixed CostsGross ProfitNet Income/(Loss)SalesSelling ExpensesVariable Costs