What is silver corps contribution margin for the month

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Reference no: EM131300994

Silver Corporation Contribution Margin

Sales


$ 960,000

Cost of goods sold


420,000

Gross margin


540,000

Selling and administrative expenses:



Selling

200,000


Administrative

75,000

275,000

Net operating income


$ 265,000

A monthly income statement and other information for Silver Corp is shown below:

Other information:

Average selling price per unit: $60

Selling expenses comprised of: fixed selling expenses plus 8% of sales

Administrative expenses comprised of: fixed administrative expenses plus $2.00 per unit

Using the contribution approach, what is Silver Corp's contribution margin for the month?

You must enter your answer in the following format: $x,xxx

Reference no: EM131300994

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