Question

Bolka Corporation, a merchandising company, reported the following results for October: Sales $ 407,000 Cost of goods sold (all variable) $ 173,400 Total variable selling expense $ 20,400 Total fixed selling expense $ 22,200 Total variable administrative expense $ 14,800 Total fixed administrative expense $ 39,700 The contribution margin for October is: Multiple Choice $198,400 $233,600 $136,500 $345,100

Answer 1

the contribution margin for October is $198,400

Step-by-step explanation:

The computation of the contribution margin for October is given below:

= Sales - Cost of goods sold (all variable) - Total variable selling expense - Total variable administrative expense

= $407,000 - $173,400 - $20,400 - $14,800

= $198,400

Hence, the contribution margin for October is $198,400

Therefore the first option is correct

And, the same should be considered