Kipling Company Has Sales of $1500000 for the First Quarter

Essay

Kipling Company has sales of $1500000 for the first quarter of 2016. In making the sales the company incurred the following costs and expenses. $$\begin{array} { l r r } & \text { Variable } & \text { Fixed } \\\hline \text { Product costs } & \$ 500,000 & \$ 550,000 \\\text { Selling expenses } & 100,000 & 75,000 \\\text { Administrative expenses } & 80,000 & 67,000\end{array}$$ Instructions
Calculate net income under CVP for 2016.