Problem
O&A Corporation, a merchandising company, reported the following results for September:
Number of units sold.............................. 7,400
Selling price per unit ...............................$677
Cost of goods sold ..........................$3,263,000
Variable selling expense per unit ................ $54
Total fixed selling expense .................$155,600
Variable administrative expense per unit ...... $24
Total fixed administrative expense ........$370,400
Questions:
What is the total variable selling expense? (Contribution income statement format)
What is the total variable expense? (Contribution income statement format)
What is the contribution margin? (Contribution income statement format)
What is the gross margin? (Traditional income statement format)
What is the total administrative expense? (Traditional income statement format)
What is the net operating income? (Traditional income statement format)