Marlinski had the following data (in thousands) for a given period. Assume there are no inventories. Direct

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Marlinski had the following data (in thousands) for a given period. Assume there are no inventories.

Direct labour ...................................................................$170
Direct materials .................................................................210
Variable factory overhead ...............................................110
Contribution margin .........................................................200
Fixed selling and administrative expenses ....................100
Operating income ...............................................................10
Sales .....................................................................................970

Compute (1) the variable manufacturing cost of goods sold, (2) the variable selling and administrative expenses, and (3) the fixed factory overhead.

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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Related Book For  answer-question

Management Accounting

ISBN: 978-0132570848

6th Canadian edition

Authors: Charles T. Horngren, Gary L. Sundem, William O. Stratton, Phillip Beaulieu

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