Question
Pants-inc produces high end pants - here is the information for the upcoming year Pants Shorts Sales $700,000 $520,000 Variable cost fo goods 580,000 400,000
Pants-inc produces high end pants - here is the information for the upcoming year
Pants | Shorts |
Sales | $700,000 | $520,000 | |
Variable cost fo goods | 580,000 | 400,000 | |
direct fixed overhead | 20,000 | 60,000 |
A sales commission of 5% is paid for each o the 2 product lines. Direct fixed selling and Admin expense was estimated to be $25,000 for the pants and $40,000 for the shorts.
Common fixed overhead for the factory is estimated to be $10,000. Common selling and aminitrative costs were estimated to be $25,000.
1. What is the pants division total contribution margin?
2. What is the shorts division total contribution margin?
3.What is the total company operating income?
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