Suppose Revenues are $529,123
Cost of Goods sold, representing the cost of products sold, is made up of $50,050 of fixed costs and $82,465 of variable costs.
Period expenses (sales, marketing and administrative expenses) are made up of $30000 of variable costs and $50000 in fixed costs.
Prepare a contribution margin income statement. What is Total Contribution Margin that would appear on the statement?
Ans:
Sales revenue |
529,123 |
Less : variable cost (82465+30000) |
112,465 |
Contribution margin |
416,658 |
Less : Fixed cost (50,050+50000) |
100,050 |
Net operating income |
316,608 |
Total Contribution margin = 416,658
Suppose Revenues are $529,123 Cost of Goods sold, representing the cost of products sold, is made...
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