Question

he following information is provided for Southall Company: Sales revenue$125,000 Variable manufacturing costs 42,500 Fixed manufacturing costs 37,500 Variable selling and administrative costs 15,000 Fixed selling and administrative costs 12,500 What is this company's contribution margin

Answer 1

Southall Company

Sales revenue$125,000

Less Variable manufacturing costs 42,500

Contribution Margin = $ 82,500

Contribution margin % = contribution margin divided by sales

= 82,500 / 125,000

= 66%