Ask Question
28 February, 09:25

Philadelphia Company has the following information for March:

Sales $450,000

Variable cost of goods sold 240,000

Fixed manufacturing costs 70,000

Variable selling and administrative expenses 52,000

Fixed selling and administrating expenses 35,000

Determine the March:

a. Manufacturing margin $

b. Contribution margin $

c. Income from operations for Philadelphia Company

+2
Answers (1)
  1. 28 February, 12:06
    0
    a. Manufacturing margin $

    Sales 450,000

    Less: Fixed manufacturing cost 70,000

    Manufacturing margin 380,000

    b, Contribution margin $

    Sales 450,000

    Less: variable costs:

    Variable cost of goods sold 240,000

    Variable selling and administrative expenses 52,000

    Contribution margin 158,000

    c. Income from operations $

    Contribution margin 158,000

    Less: Fixed manufacturing cost 70,000

    Fixed selling and administrative expenses 35,000

    Income from operations 53,000

    Explanation:

    Manufacturing margin is the excess of sales over fixed manufacturing cost.

    Contribution margin is the excess of sales over total variable costs.

    Income from operation is the excess of contribution margin over total fixed costs.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Philadelphia Company has the following information for March: Sales $450,000 Variable cost of goods sold 240,000 Fixed manufacturing costs ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers