Coronado Industries sells 50000 units for $13 a unit. Fixed costs are $350000 and net income is $100000. What should be reported as variable expenses in the CVP income statement?

Total variable cost= $200,000

Explanation:

Giving the following information:

Coronado Industries sells 50,000 units for $13 a unit. Fixed costs are $350,000 and net income is $100,000.

First, we need to calculate the total contribution margin:

Total contribution margin= net income + fixed costs

Total contribution margin= 100,000 + 350,000

Total contribution margin= $450,000

Now, we can calculate the total variable costs:

Total variable cost= Sales - total contribution margin

Total variable cost= 50,000*13 - 450,000

Total variable cost= 200,000

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