McCoy Company has the following information for July: Sales ...................$560,000 Variable cost of goods sold .......... 291,200

Question:

McCoy Company has the following information for July:

Sales ...................$560,000

Variable cost of goods sold .......... 291,200

Fixed manufacturing costs ......... 50,400

Variable selling and administrative expenses ... 145,600

Fixed selling and administrative expenses .... 33,600

Determine

a. The manufacturing margin,

b. The contribution margin, and

c. Income from operations for McCoy Company for the month of July.

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...