Calculate the contribution margin and operating income for June using variable costing. Maynard Company reports the following

Question:

Calculate the contribution margin and operating income for June using variable costing.

Maynard Company reports the following information for June:

Sales Revenue...................................................... $ 726,000

Variable Cost of Goods Sold .............................. 225,000

Fixed Cost of Goods Sold ................................... 175,000

Variable Selling and Administrative Costs ....... 150,000

Fixed Selling and Administrative Costs............ 63,000

Contribution Margin
Contribution 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...