Asked by Sally Suzie on Jul 09, 2024
Verified
The China Department of the Coulsen Department Store had sales of $282,000, cost of goods sold of $198,750, indirect expenses of $19,875, and direct expenses of $41,250 for the current period. What is the China Department's contribution to overhead as a percent of sales?
Indirect Expenses
Costs that are not directly attributable to the production of goods or services, such as administrative and marketing expenses.
- Calculate contribution to overhead and profitability ratios.
Verified Answer
ZK
Zybrea KnightJul 12, 2024
Final Answer :
$282,000 - $198,750 - $41,250 = $42,000
$42,000/$282,000 = 14.9%
$42,000/$282,000 = 14.9%
Learning Objectives
- Calculate contribution to overhead and profitability ratios.
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