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Sales $828,920 Cost of goods sold 334,960 Gross margin 493,960 Selling and administrative expenses: Selling expenses $246,000 Administrative expenses 152,000 398,000 Net operating income $95,960
Sales $828,920 Cost of goods sold 334,960 Gross margin 493,960 Selling and administrative expenses: Selling expenses $246,000 Administrative expenses 152,000 398,000 Net operating income $95,960 Skis sell, on the average, for $391 per pair. Variable selling expenses are $49 per pair of skis sold. The remaining selling expenses are fixed. The administrative expenses are 24% variable and 76% fixed. The company does not manufacture its own skis; it purchases them from a supplier for $158 per pair
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