Computation of gross margin and contribution margin


Question1: Monsivais Corporation, a manufacturing firm, has provided the following financial information 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 firm had no beginning or ending inventories.

The contribution margin for February was:

[A]$172,000

[B] $40,000

[C] $338,000

[D] $303,000

Question3: In December, Barkes Corporation, a manufacturing firm, reported the following financial information:

The firm had no starting or ending inventories.

The gross margin for December was:

[A] $121,000

[B] $32,000

[C] $201,000

[D] $181,000

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Cost Accounting: Computation of gross margin and contribution margin
Reference No:- TGS022814

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