Answer:
A Cost-Volume-Profit statement is used to show just how the different costs incurred contribute to the expenses. It divides the costs into variable and fixed costs for better analysis.
Sales                                        $2,210,000
Variable Costs:
Cost of Goods sold                  $921,000
Selling expenses                    $ 71,000
Admin expenses                    $87,000
Total variable costs                            ($1,079,000)
Contribution margin                            $1,131,000
Fixed costs:
Cost of goods                      $441,000
Selling expenses                   $ 46,000
Admin expenses                   $ 99,000
Total fixed costs                              ($586,000)
Net operating income                          $545,000
