Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting Tools For Business Decision Making

Authors: Jerry J. Weygandt, Paul D. Kimmel, Jill E. Mitchell

9th Edition

111970958X, 9781119709589

More Books

Students also viewed these Accounting questions