Moffett Company reports the following information for March: Sales Revenue ............... $ 72,500 Variable Cost of Goods

Question:

Moffett Company reports the following information for March:
Sales Revenue ............... $ 72,500
Variable Cost of Goods Sold ........14,360
Fixed Cost of Goods Sold .........12,100
Variable Selling and Administrative Costs ....11,500
Fixed Selling and Administrative Costs ..... 6,400
Requirements
1. Calculate the gross profit and operating income for March using absorption costing.
2. Calculate the and operating income for March using variable costing. 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...