Marlinski had the following data (in thousands) for a given period. Assume there are no inventories. Direct
Question:
Marlinski had the following data (in thousands) for a given period. Assume there are no inventories.
Direct labour ...................................................................$170
Direct materials .................................................................210
Variable factory overhead ...............................................110
Contribution margin .........................................................200
Fixed selling and administrative expenses ....................100
Operating income ...............................................................10
Sales .....................................................................................970
Compute (1) the variable manufacturing cost of goods sold, (2) the variable selling and administrative expenses, and (3) the fixed factory overhead.
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...
Step by Step Answer:
Management Accounting
ISBN: 978-0132570848
6th Canadian edition
Authors: Charles T. Horngren, Gary L. Sundem, William O. Stratton, Phillip Beaulieu