Question

Phil Jim Corporate Revenues 100,000.00 90,000.00 Fixed costs 2,000.00 4,000.00 45,000.00 32,000.00 15,000.00 12,000.00 30,000.00 28,000.00 VOH DM DL 5. Using EXCEL, calculate the contribution margin and each manager's contribution to the company's operating income. Based on the performance goals and the contribution to operating income, which manager should receive a bonus?

Answer 1

	Phil	Jim	Corporate
Revenues	$    1,00,000	$        90,000	$ 1,90,000
Variable expenses:
DM	$        15,000	$        12,000	$     27,000
DL	$        30,000	$        28,000	$     58,000
VOH	$        45,000	$        32,000	$     77,000
Total variable expenses	$        90,000	$        72,000	$ 1,62,000
Contribution margin	$        10,000	$        18,000	$     28,000
Fixed costs	$          2,000	$           4,000	$        6,000
Operating income	$          8,000	$        14,000	$     22,000
Contribution to operating income	36.36%	63.64%
Performance goals not given.