Solution-Find the contribution margin for sam bookstore

Find the contribution margin for sam bookstore

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Reference no: EM132596303

An income statement for Sam's Bookstore for the first quarter of the year is presented below:

Sam's Bookstore

Income Statement For Quarter Ended March 31

Sales $990,000Cost of goods sold 675,000

Gross margin 315,000

Selling and administrative expenses Selling$109,000

Administration 122,000

231,000

Net operating income $84,000

On average, a book sells for $60. Variable selling expenses are $6 per book with the remaining selling expenses being fixed. The variable administrative expenses are 5% of sales with the remainder being fixed.

Question 1: The contribution margin for Sam's Bookstore for the first quarter is

Reference no: EM132596303

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Find the contribution margin for sam bookstore

Reference no: EM132596303

Reference no: EM132596303

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