Cost-volume-profit (CVP) is so important for decision-making, and management needs this information reported in a CVP income statement format for internal use. The CVP income statement classifies costs as variable or fixed and computes a contribution margin. Please use ABC Company’s financial information to create a CVP income statement. The relevant data for its products is posted below:

Product                                                          JB50                           JB60

Unit Selling Price of Product                        $20                              $25

Unit Variable Costs                                         $7                                $8

Total Monthly Fixed Costs                        $603,000                     $440,000

Units Sold                                                     400,000                       200,000