Question

1.Stanton Company has the following information for March:

Sales

$470,000

Variable cost of goods sold

225,000

Fixed manufacturing costs

80,000

Variable selling and administrative expenses

52,000

Fixed selling and administrating expenses

35,000

Determine the March (a) manufacturing margin, (b) contribution margin, and (c) income from operations for Stanton Company.

Answer 1

(a) $245,000 ($470,000 - $225,000)

(b) $193,000 ($245,000 - $52,000)

(c) $78,000 ($193,000 - $80,000 - $35,000)