Assume the following information for a merchandising company: Number of units sold 20,000 Selling price per unit $ 30 Variable selling expense per unit $ 3.6 Variable administrative expense per unit $ 3.1 Fixed administrative expenses $ 50,000 Beginning merchandise inventory $ 24,000 Ending merchandise inventory $ 19,000 Merchandise purchases $ 340,000 What is the contribution margin?
Sales (Unit Sold * Selling Price Per Unit) (20000*30) | $ 6,00,000 |
Variable Costs: | |
Direct material ( Beginning Inventory + purchases -edning Inventory) | $ 3,45,000 |
(24000+340000-19000) | |
Variable selling expense (20000*3.6) | $ 72,000 |
Variable administrative expense (20000*3.1) | $ 62,000 |
Total | $ 4,79,000 |
Contribution Margin | $ 1,21,000 |
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