Asked by Jasmine Jackson on May 02, 2024
Verified
Boersma Sales, Incorporated a merchandising company, reported sales of 7,100 units in September at a selling price of $682 per unit. Cost of goods sold, which is a variable cost, was $317 per unit. Variable selling expenses were $44 per unit and variable administrative expenses were $22 per unit. The total fixed selling expenses were $157,200 and the total administrative expenses were $338,000.The contribution margin for September was:
A) $3,878,400
B) $2,122,900
C) $2,591,500
D) $1,627,700
Contribution Margin
The amount remaining from sales revenue after variable expenses are subtracted, contributing towards covering fixed costs and profit.
Variable Selling Expenses
Costs that fluctuate with the level of sales, such as commissions or shipping fees.
Variable Administrative Expenses
Expenses that vary with the level of business activity, such as sales commissions or supply costs.
- Find the contribution margin per unit and the collective contribution margin.
Verified Answer
Learning Objectives
- Find the contribution margin per unit and the collective contribution margin.
Related questions
Saxbury Corporation's Relevant Range of Activity Is 3,000 Units to ...
Morrisroe Corporation Has Provided the Following Information ...
Learned Corporation Has Provided the Following Information ...
Stauffer Corporation Has Provided the Following Contribution Format Income Statement ...
Kelchner Corporation Has Provided the Following Contribution Format Income Statement ...