Question

Bolka Corporation, a merchandising company, reported the following results for October:Sales $ 418,000 Cost of goods sold (all variable) $ 175,500 Total variable selling expense $ 23,700 Total fixed selling expense $ 21,800 Total variable administrative expense $ 16,200 Total fixed administrative expense $ 34,300 The contribution margin for October is _______.

Answer 1

Answer:

$202,600

Explanation:

Given that,

Sales = $418,000

Cost of goods sold (all variable) = $175,500

Total variable selling expense = $23,700

Total fixed selling expense = $21,800

Total variable administrative expense = $16,200

contribution margin:

= Sales - Variable cost

= $418,000 - (Cost of goods sold + Total variable selling expense + Total variable administrative expense)

= $418,000 - ($175,500 + $23,700 + $16,200)

= $202,600

Therefore, the contribution margin for October is $202,600.

Answer 2

Answer:

Contribution Margin = Sales - variable costs

= Sales - ( Cost of goods sold (all variable) +  Total variable selling expense + Total variable administrative expense)

= $ 418,000 - ( $ 175,500 + $ 23,700 + $ 16,200 )

= $ 418,000 - ( $ 215,400)

= $ 202,600

Hence, the contribution margin for October is $ 202,600 respectively.

Explanation:

Refer to the answer.