Question

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?

Homework Answers

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
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Cherokee Inc. is a merchandiser that provided the following information: Amount Number of units sold 20,000...
Cherokee Inc. is a merchandiser that provided the following information: Amount Number of units sold 20,000 Selling price per unit $ 30 Variable selling expense per unit $ 4 Variable administrative expense per unit $ 2 Total fixed selling expense $ 40,000 Total fixed administrative expense $ 30,000 Beginning merchandise inventory $ 24,000 Ending merchandise inventory $ 44,000 Merchandise purchases $ 180,000 Required: 1. Prepare a traditional income statement. 2. Prepare a contribution format income statement.
Cherokee Inc. is a merchandiser that provided the following information: Amount Number of units sold 11,000...
Cherokee Inc. is a merchandiser that provided the following information: Amount Number of units sold 11,000 Selling price per unit $ 17 Variable selling expense per unit $ 2 Variable administrative expense per unit $ 1 Total fixed selling expense $ 19,000 Total fixed administrative expense $ 15,000 Beginning merchandise inventory $ 12,000 Ending merchandise inventory $ 25,000 Merchandise purchases $ 88,000 1. Prepare a traditional income statement. 2. Prepare a contribution format income statement.
Cherokee Inc. is a merchandiser that provided the following information: Amount Number of units sold 11,000...
Cherokee Inc. is a merchandiser that provided the following information: Amount Number of units sold 11,000 Selling price per unit $ 18 Variable selling expense per unit $ 2 Variable administrative expense per unit $ 2 Total fixed selling expense $ 19,000 Total fixed administrative expense $ 15,000 Beginning merchandise inventory $ 11,000 Ending merchandise inventory $ 25,000 Merchandise purchases $ 88,000 Required: 1. Prepare a traditional income statement. 2. Prepare a contribution format income statement.
Cherokee Inc. is a merchandiser that provided the following information: Amount Number of units sold 12,000...
Cherokee Inc. is a merchandiser that provided the following information: Amount Number of units sold 12,000 Selling price per unit $ 18 Variable selling expense per unit $ 2 Variable administrative expense per unit $ 2 Total fixed selling expense $ 21,000 Total fixed administrative expense $ 15,000 Beginning merchandise inventory $ 11,000 Ending merchandise inventory $ 24,000 Merchandise purchases $ 90,000 Required: 1. Prepare a traditional income statement. 2. Prepare a contribution format income statement.
Cherokee Inc. is a merchandiser that provided the following information: Amount Number of units sold 12,000...
Cherokee Inc. is a merchandiser that provided the following information: Amount Number of units sold 12,000 Selling price per unit $ 16 Variable selling expense per unit $ 2 Variable administrative expense per unit $ 2 Total fixed selling expense $ 20,000 Total fixed administrative expense $ 15,000 Beginning merchandise inventory $ 9,000 Ending merchandise inventory $ 23,000 Merchandise purchases $ 89,000 Required: 1. Prepare a traditional income statement. 2. Prepare a contribution format income statement.
Cherokee Inc. is a merchandiser that provided the following information: Amount Number of units sold 13,000...
Cherokee Inc. is a merchandiser that provided the following information: Amount Number of units sold 13,000 Selling price per unit $ 16 Variable selling expense per unit $ 2 Variable administrative expense per unit $ 2 Total fixed selling expense $ 18,000 Total fixed administrative expense $ 15,000 Beginning merchandise inventory $ 12,000 Ending merchandise inventory $ 25,000 Merchandise purchases $ 88,000 Required: 1. Prepare a traditional income statement. 2. Prepare a contribution format income statement.
Cherokee Inc. is a merchandiser that provided the following information: Amount Number of units sold 14,000...
Cherokee Inc. is a merchandiser that provided the following information: Amount Number of units sold 14,000 Selling price per unit $ 15 Variable selling expense per unit $ 2 Variable administrative expense per unit $ 3 Total fixed selling expense $ 21,000 Total fixed administrative expense $ 14,000 Beginning merchandise inventory $ 9,000 Ending merchandise inventory $ 23,000 Merchandise purchases $ 88,000 Required: 1. Prepare a traditional income statement. 2. Prepare a contribution format income statement.
Cherokee Inc. is a merchandiser that provided the following information: Amount Number of units sold 14,000...
Cherokee Inc. is a merchandiser that provided the following information: Amount Number of units sold 14,000 Selling price per unit $ 17 Variable selling expense per unit $ 2 Variable administrative expense per unit $ 2 Total fixed selling expense $ 22,000 Total fixed administrative expense $ 15,000 Beginning merchandise inventory $ 9,000 Ending merchandise inventory $ 25,000 Merchandise purchases $ 89,000 Required: 1. Prepare a traditional income statement. 2. Prepare a contribution format income statement.
Item 4 Item 4 Acme Inc. is a merchandise reseller that provided the following information: Amount...
Item 4 Item 4 Acme Inc. is a merchandise reseller that provided the following information: Amount Number of units sold 13,000 Selling price per unit $ 16 Variable selling expense per unit $ 1 Variable administrative expense per unit $ 2 Total fixed selling expense $ 19,000 Total fixed administrative expense $ 15,000 Beginning merchandise inventory $ 9,000 Ending merchandise inventory $ 23,000 Merchandise purchases $ 87,000 What is the company's gross margin for the period?
Duffy Corporation, a merchandising company, reported the following results for year 2014: Number of units sold...
Duffy Corporation, a merchandising company, reported the following results for year 2014: Number of units sold 5,000 units Selling price per unit $200 per unit Unit cost of goods sold $120 per unit Variable selling expense per unit $18 per unit Total fixed selling expense $28,000 Variable administrative expense per unit $15 per unit Total fixed administrative expense $120,000 What is the contribution margin for Duffy Corporation in year 2014? A. $765,000 B. $235,000 C. $400,000 D. $835,000
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT