Question

EES- 1 15 PE 5-1A Variable costing 03.1 Light Company has the following information for January Sales $648,000 Variable cost of goods sold 233.200 Fixed manufacturing costs 155,500 Variable selling and administrative expenses 51,800 Fixed selling and administrative expenses 36,800 Determine (a) the manufacturing margin, (b) the contribution margin, and (c) income from operations for Light Company for the month of January. EE 5-1 a 185 PE 5-1R Yol

Answer 1

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Sales			$     648,000
Less: Variable Cost of goods sold			$   (233,200)
Manufacturing Margin	Part a		$     414,800
Less: Variable Selling and admin expense			$     (51,800)
Contribution Margin	Part b		$     363,000
Less: Fixed Cost
-Cost of goods sold		$   155,500
-Selling and admin expense		$      36,800	$   (192,300)
Income from operations	Part c		$     170,700