Homework Answers
20)The gross profit is calculated by Deducting Cost of Goods Sold from the Sales
So Gross Profit = Sales - Cost of Goods Sold
=$500000-$200000
=$300000
So the correct answer is option c)$300000
21)Contribution margin is calculated by deducting Variable Expense from Sales
here variable expenses are cost of goods sold and variable selling expense
So Contribution Margin = Sales - Cost of Goods Sold - Variable Selling Expense
= $500000-$200000-$50000
= $250000
So the correct answer is option a)$250000
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