Question
The Middlesex Valley Company is a merchandising firm that sells a single product. The company's revenues and expenses for the last three months are given
The Middlesex Valley Company is a merchandising firm that sells a single product. The company's revenues and expenses for the last three months are given below:
Middlesex Valley CompanyComparative Income StatementFor the Second QuarterAprilMayJuneSales in units4,5005,2506,000Sales Revenue$630,000$735,000$840,000Cost of goods sold$252,000$294,000$336,000Gross margin$378,000$441,000$504,000Selling and administrative expenses:Shipping expense$56,000$63,500$71,000Advertising expense$70,000$70,000$70,000Salaries and commisions$143,000$161,500$180,500Insurance expense$9,000$9,000$9,000Depreciation expense$42,000$42,000$42,000Total selling and administrative expense$320,000$346,250$372,500Net operating income$58,000$94,750$131,500
Compute the company's total contribution margin for April.
$600,000
$220,500
$475,000
$257,250
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