Question

Hinge Manufacturing's cost of goods sold is $420,000 variable and $240,000 fixed. Thecompany's selling and administrative expenses are $300,000 variable and $360,000fixed. If the company's sales is $1,680,000, what is its contribution margin?

Answer 1

Answer:

Contribution margin= $960,000

Explanation:

Giving the following information:

Hinge Manufacturing's:

Cost of goods sold variable= $420,000

Cost of goods sold fixed= $240,000

The company's selling and administrative expenses are $300,000

variable and $360,000fixed.

If the company's sales are $1,680,000

Sales= 1680000

Variable cost of goods sold= 420000

Variable selling and administrative expenses=300000

Contribution margin= $960,000