Calculate the contribution margin for each department and income before taxes, based on the following: Dept. A
Question:
Calculate the contribution margin for each department and income before taxes, based on the following:
Contribution MarginContribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...
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Dept. A 7,000 square feet Dept. B 17,000 square feet Net Sales $66,000 $81,000 Cost of Goods Sold 24,000 48,000 Sales Salaries $7,500 (48% directly related to Dept. A and 52% to Dept. B) Rent Expense $5,000 Advertising Expense $33,000 ($3,600 directly related to Dept. A and $9,600 to Dept. B)
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DEPT A DEPT B TOTAL Net Sales 66 0 0 0 00 81 0 0 0 00 147 0 ...View the full answer
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Related Book For
College Accounting A Practical Approach
ISBN: 9780134729312
14th Edition
Authors: Jeffrey Slater, Mike Deschamps
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