Compute the variable selling and administrative expenses


Response to the following problem:

The Sharma Company provides you with the following miscellaneous data regarding operations in 20X9:

Gross Profit $40,000

Net Profit 15,000

Sales 120,000

Direct Material Used 35,000

Direct Labor 25,000

Fixed Manufacturing Overhead 15,000

Fixed selling and administrative expenses 12,000

There are no beginning or ending inventories.

Compute:

(a) variable selling and administrative expenses,

(b) contribution margin in dollars,

(c) variable manufacturing overhead,

(d) break-even point in sales dollars, and

(e) manufacturing cost of goods sold.

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Cost Accounting: Compute the variable selling and administrative expenses
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