Example 2 (KB A.12.6): The financial information of a company for the year 20X1 are as follows: TL 4.000 1.800 700 Required: a) Ascertain the cost of goods sold on the base of Absorption Costing Method. b) Ascertain the cost of goods sold on the base of Variable Costing Method. c) Compute gross contribution margin d) Compute the Breakeven Point. ? Net Sales Direct Material (variable) Direct Labor (variable) Factory Overhead - Variable - Fixed Total Net Contribution Margin Marketing and Selling Cost - Variable - Fixed Gross Sales Profit Operating Profit ? ? 650 250 ? 700 300