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Assume the following information for a merchandising company: Number of units sold 20,000 Selling price per...

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?

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Answer #1
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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