Maynard Company reports the following information for March: Sales Revenue ................$ 67,850 Variable Cost of Goods Sold........

Question:

Maynard Company reports the following information for March:

Sales Revenue ................$ 67,850

Variable Cost of Goods Sold........ 22,250

Fixed Cost of Goods Sold .........12,800

Variable Selling and Administrative Costs... 16,500

Fixed Selling and Administrative Costs ....5,200

Requirements

1. Calculate the gross profit and operating income for March using absorption costing.

2. Calculate the contribution margin and operating income for March using variable costing.

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...