Cedar Grove Industries produces and sells a cell phone-operated home security control. Information regarding the costs and sales of security controls during May 2017 are provided below. Unit selling price of security control $49 Unit variable costs $28 Total monthly fixed costs $121,000 Units sold 7,600 Prepare a CVP income statement for Cedar Grove Industries for the month of May. Provide per unit values and total values.

$47,000

Explanation:

Cedar Grove Industries CVP Income Statement for Month Ending May, 2017

Total Per Unit

Sales ($49×7,600) $372,400 49

Less Variable Cost

($28×7,300) $204,400 28

Contribution Margin $168,000 21

Less Fixed Cost$121,000

Net Income (loss)$47,000

in 2001, dell computer became the world’s largest personal computer vendor, continuing to

gain market share and post profits in an industry struggling with slumping sales and billions of

dollars in losses. dell sells 90% of its pcs directly to the final customer, largely bypassing the

reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

is the key to dell’s business model, and provides distinct advantages over the indirect sales

model. dell’s direct relationship with the customer allows it to tailor its offerings to customer

needs, offer add-on products and services, and use the internet to offer a variety of customer

services. in addition, dell’s pcs are built to customers’ specifications upon receipt of an order,

giving dell additional advantages over indirect pc vendors who must try to forecast demand and

ship products based on those forecasts. dell’s direct sales and build-to-order model has achieved

superior performance in the pc industry in terms of inventory turnover, reduced overhead, cash

conversion, and return on investment (kraemer, et al., 2000).

explanation: