Question

Delongis Corporation, a merchandising company, reported the following results for June: Number of units sold $ 1,200 units Selling price per unit $ 221 per unit Unit cost of goods sold $ 97 per unit Variable selling expense per unit $ 12 per unit Total fixed selling expense $ 7,300 Variable administrative expense per unit $ 8 per unit Total fixed administrative expense $ 15,300 Cost of goods sold is a variable cost in this company. The contribution margin for June is:

Answer 1

265200 116400 sales =$221*1200 less variable costs cost of goods sold =$97*1200 variable selling costs $12*1200 variable administration costs =$8*1200 total variable costs contribution margin for june 14400 9600 140400 124800 contribution margin = sales- variable costs