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ABC Company is a honey wholesaler. An income statement and other data for the third quarter of the year are given below: ABC Company Income
ABC Company is a honey wholesaler. An income statement and other data for the third quarter of the year are given below:
ABC Company | ||
Income Statement For the Quarter Ended September 30 | ||
Sales | $960,000 | |
Cost of goods sold | 420,000 | |
Gross Profit | 540,000 | |
Less operating expenses: | ||
Sales expenses | $200,000 | |
Administrative expenses | 75,000 | 275,000 |
Net operating profit | $265,000 | |
Other data: | ||
Average selling price | $60 per unit | |
Sales expenses | Base salaries plus 8% of sales | |
Administrative expenses | Base salaries plus $2 per unit |
ABC Company's Contribution Margin for the 3rd quarter is:
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