Question
Sales are $200,000 and $210,000 for May and June, respectively; Cost of Goods Sold (CGS) 65%, Variable Cost (VC) 20%, Monthly Fixed Costs (FC) $12,000,
Sales are $200,000 and $210,000 for May and June, respectively; Cost of Goods Sold (CGS) 65%, Variable Cost (VC) 20%, Monthly Fixed Costs (FC) $12,000, Depreciation included in FC $4,000, Ending inventory is 40% of next month CGS, Beginning Inventory for May is $52,000; What is total contribution margin for May and June?
| 1. | $17,500 and $ 18,500 | |
| 2. | $30,000 and 31,500 | |
| 3. | $31,500 and $32,500 | |
| 4. | $34,500 and $35,500 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Auditing
Authors: Thomas D. Hubbard, J. R. Johnson, Steve Johnson, Joel D. Hubbard
6th Edition
0873932609, 9780873932608
