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6) Mexico Company has the following data about its only product: Revenue $800,000 Direct materials used $200,000 Direct labor 80,000 Indirect manufacturingfixed 100,000 Selling and
6) Mexico Company has the following data about its only product:
Revenue $800,000
Direct materials used $200,000
Direct labor 80,000
Indirect manufacturingfixed 100,000
Selling and administrativefixed 150,000
Indirect manufacturingvariable 20,000
Selling and administrativevariable 60,000
Mexico Company uses the contribution approach. What is the contribution margin? calculate the operating income using contribution and absorption methods
A) $390,000
B) $350,000
C) $440,000
D) $500,000
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