Question

Bolka Corporation, a merchandising company, reported the following results for October: Sales $ 447,000 Cost of goods sold (all variable) $ 170,500 Total variable selling expense $ 20,100 Total fixed selling expense $ 21,600 Total variable administrative expense $ 8,500 Total fixed administrative expense $ 31,300 The contribution margin for October is:

Answer 1

Answer: The contribution margin for October is:$247,900

Explanation:

Given :

Sales= $ 447,000

Cost of goods sold (all variable) = $ 170,500

Total variable selling expense = $ 20,100

Total fixed selling expense = $ 21,600

Total variable administrative expense = $ 8,500

$\therefore$Contribution margin = (Sales-Variable costs)

=[$447,000-($170500+$20,100+$8,500)]

=$247,900