Question
The budget for a product is as follows. Sales $10,000,000 Materials and labor 4,000,000 Fixed manufacturing overhead 1,500,000 Sales commissions 500,000 Advertising (fixed) 200,000 Other
The budget for a product is as follows.
| Sales | $10,000,000 | |
| Materials and labor | 4,000,000 | |
| Fixed manufacturing overhead | 1,500,000 | |
| Sales commissions | 500,000 | |
| Advertising (fixed) | 200,000 | |
| Other marketing costs (fixed) | 800,000 | |
| Allocated administrative costs | 2,000,000 | |
| Income | $ 1,000,000 |
The budgeted contribution margin for this product is
| A. | $5,300,000 |
| B. | $4,500,000 |
| C. | $5,500,000 |
| D. | $3,000,000 |
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Management And Compliance Audit A Complete Guide
Authors: Gerardus Blokdyk
2020 Edition
0655927727, 978-0655927723
