Question

The Menswear Department of Major's Department Store had sales of $198,000, cost of goods sold of $137,500, indirect expenses of $14,250, and direct expenses of $28,500 for the current period. The Menswear Department's contribution to overhead as a percent of sales is:

Answer 1

the contribution to overhead as a percent of sales is 16.16%

Step-by-step explanation:

The computation of the contribution to overhead as a percent of sales is given below;

Sales $198,000

Less: Cost of goods sold $137,500

Less: Direct Expenses $28,500

Contribution $32,000

Now the percentage should be

= $32,000 ÷ $198,000

= 16.16%

Hence, the contribution to overhead as a percent of sales is 16.16%