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Home Q & A Board Other Fields Homework Help Business Accounting
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dmalex13 dmalex13
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A year ago

The University Store, Incorporated is the major bookseller for four nearby colleges. An income statement for the first quarter of the year is presented below:

University Store, Incorporated
Income Statement
For the Quarter Ended March 31
Sales$ 800,000
Cost of goods sold560,000
Gross margin240,000
Selling and administrative expenses:
Selling$ 100,000
Administrative110,000210,000
Net operating income$ 30,000

On average, a book sells for $40.00. Variable selling expenses are $3.00 per book; the remaining selling expenses are fixed. The variable administrative expenses are 5% of sales; the remainder of the administrative expenses are fixed.

The contribution margin for the University Store for the first quarter is:



▸ $660,000

▸ $700,000

▸ $180,000

▸ $140,000
Textbook 
Introduction to Managerial Accounting: Brewer Edition: 9e

Introduction to Managerial Accounting: Brewer Edition: 9e


Edition: 9th
Authors:
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dm408dm408
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A year ago
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Anonymous
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#2
6 months ago
Help! The answer is missing an explanation...
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#3
6 months ago
Does that help?
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