Calculation of Contribution margin and gross margin using Marginal costing.
1. Monsivais Corporation, a manufacturing company, has provided the following financial data for February:
Sales $470,000
Variable production expense $81,000
Variable selling expense $11,000
Variable administrative expense $40,000
Fixed production expense $86,000
Fixed selling expense $73,000
Fixed administrative expense $139,000
The company had no beginning or ending inventories.
The contribution margin for February was:
a. $338,000
b. $303,000
c. $172,000
d. $40,000
2. In December, Barkes Corporation, a manufacturing company, reported the following financial data:
The company had no beginning or ending inventories.
The gross margin for December was:
a. $201,000
b. $181,000
c. $121,000
d. $32,000