Question

Oscar Corporation, a merchandising company, reported the following results for October: Sales $ 500,000 Cost of goods sold (all variable) $ 170,700 Total variable selling expense $ 24,600 Total fixed selling expense $ 21,500 Total variable administrative expense $ 10,000 Total fixed administrative expense $ 34,900 The contribution margin for October is:

Answer 1

$294,700

Step-by-step explanation:

Contribution Margin - Sales less Variable Cost

The contribution margin for October is calculated as follows :

Sales $ 500,000

Less Variable Costs

Cost of goods sold (all variable) ($ 170,700)

Total variable selling expense ($ 24,600)

Total variable administrative expense ($ 10,000)

Contribution Margin $294,700