When I try to make a CVP income statement with the following data I end up with

Question

When I try to make a CVP income statement with the following data I end up with a negative net income. What am I doing wrong?

Sales 2,400,000 total, $8 per unit. Variable costs 1,815,000 total and 6.05 per unit. Contribution Margin 585,000 or 2 per unit. Fixed costs $990,000. Net Loss 405,000. I'm not supposed to have a net loss.

Variable costs Particulars Amount Direct material (300000*0.80) 240000 Direct labour(300000*2) 600000 Packaging (300000*0.75) 225000 Variable manufacturing overhead(300000*1.2) 360000 Sales commission (300000*0.80) 240000 Shipping(300000*0.50) 150000 Total variable cost 1815000 Fixed costs Particulars Amount Fixed manufacturing overhead 540000 Fixed advertising and promotion 180000 Fixed selling and administration 270000 Total fixed costs 990000

Explanation / Answer

**variable cost of sales :.80+2+.75+2 = 4.75

***As per Information/data given there will be a loss of 405000..Is there any other data provided.

Income statment sales 2,400,000 less:variable cost variable cost of sales [4.75*300000] 1425000 variable selling [300000*1.3] 390000 Total variable cost 1815000 contribution margin 585000 less:fixed cost Fixed manufacturing overhead Fixed advertising and promotion 540000 Fixed selling and administration 180000 Total fixed cost 270000 (990000) Net Income /(loss) (405000)

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