Question

Philadelphia Company has the following information for March:

Sales	$464,675
Variable cost of goods sold	204,890
Fixed manufacturing costs	79,551
Variable selling and administrative expenses	53,477
Fixed selling and administrating expenses	37,485

a. Determine the March manufacturing margin.
$

b. Determine the March contribution margin.
$

c. Determine the March income from operations for Philadelphia Company.
$

Answer 1

a.

March manufacturing margin = Sales - Variable cost of goods sold - Fixed manufacturing costs

= $464,675 - $204,890 - $79,551

= $180,234

b.

March contribution margin = Sales - Variable cost of goods sold - Variable selling and administrative expenses

= $464,675 - $204,890 - $53,477

= $206,308

c.

Sales	$464,675
Variable cost of goods sold	($204,890)
Fixed manufacturing costs	($79,551)
Variable selling and administrative expenses	($53,477)
Fixed selling and administrating expenses	($7,485)
Income from operations	$89,272