Wesley’s contribution margin income statement is as follows: Sales (10,000 units) $150,000 Less variable COGS -...
Wesley’s contribution margin income statement is as follows:
|
Sales (10,000 units) |
$150,000 |
|
Less variable COGS |
- 40,000 |
|
Less variable selling cost |
- 8,000 |
|
Contribution margin |
$102,000 |
|
Less fixed COGS |
- 18,000 |
|
Less fixed selling cost |
- 6,000 |
|
Net income |
$ 78,000 |
What GROSS MARGIN would appear on a TRADITIONAL income statement?
Homework Answers
Answer: $92,000
Explanation:
Gross margin = Sales - Cost of goods sold
Cost of goods sold = Variable COGS + Fixed COGS
Cost of goods sold = $40,000 + $18,000 = $58,000
Gross margin = $150,000 - $58,000 = $92,000
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