Calculate the contribution margin for each department and income before taxes, based on the following Dept A 7,000 square feet Dept B 17,000 square feet Net Sales $66,000 $81,000 Cost of Goods Sold 24,000 48,000 Sales Salaries $7,500 (48 directly related to Dept A and 52 to Dept B) Rent Expense $5,...

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

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

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 66 0 0 0 00 81 0 0 0 00 147 0 ...View the full answer

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Related Book For answer-question

College Accounting A Practical Approach

ISBN: 9780134729312

14th Edition

Authors: Jeffrey Slater, Mike Deschamps

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Question Posted: Mar 03, 2020 07:38 AM

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

Question:

Dept. A 7,000 square feet Dept. B 17,000 square feet Net Sales $66,000 $81,000 Cost of Goods Sold 24,000 48,000 Sales Salaries $7,500 (48% directly related to Dept. A and 52% to Dept. B) Rent Expense $5,000 Advertising Expense $33,000 ($3,600 directly related to Dept. A and $9,600 to Dept. B)

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DEPT A DEPT B TOTAL Net Sales 66 0 0 0 00 81 0 0 0 00 147 0 ...View the full answer

College Accounting A Practical Approach

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