Calculate the contribution margin for each department and income before taxes, based on thefollowing Dept A 11,000 square feet Dept B 19,000 square feet $81,000 50,000 Net Sales Cost of Goods Sold Sales Salaries $54,000 23,000 10,000 (50 directly related to Dept A and 50 to Dept B) Rent Expense Adv...

Calculate the contribution margin for each department and income before taxes, based on thefollowing: Dept. A 11,000

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Calculate the contribution margin for each department and income before taxes, based on thefollowing:

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Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...

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DEPT A DEPT B TOTAL Net Sales 54 0 0 0 00 81 0 0 0 00 135 0 0 0 00 ...View the full answer

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College Accounting A Practical Approach

ISBN: 978-0133133233

12th edition

Authors: Jeffrey Slater

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Question Posted: Apr 24, 2014 10:52 AM

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Calculate the contribution margin for each department and income before taxes, based on thefollowing: Dept. A 11,000

Question:

Dept. A 11,000 square feet Dept. B 19,000 square feet $81,000 50,000 Net Sales Cost of Goods Sold Sales Salaries $54,000 23,000 10,000 (50% directly related to Dept. A and 50% to Dept. B) Rent Expense Advertising Expense 6,000 36,000 ($2,100 directly related to Dept. A and $8,100 to Dept. B)

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DEPT A DEPT B TOTAL Net Sales 54 0 0 0 00 81 0 0 0 00 135 0 0 0 00 ...View the full answer

College Accounting A Practical Approach

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