Question

Bolka Corporation, a merchandising company, reported the following results for October:

Sales	$ 418,000
Cost of goods sold (all variable)	$ 175,500
Total variable selling expense	$ 23,700
Total fixed selling expense	$ 21,800
Total variable administrative expense	$ 16,200
Total fixed administrative expense	$ 34,300

The contribution margin for October is:

Multiple Choice

• $202,600

• $361,900

• $146,500

Answer 1

Calaculation of contribution margin for October:

The correct option is

• $202600

Explanation:

Contributiom margin:

Sales		$418000
Less: Variable expenses
Cost of goods sold	$175500
Variable selling expenses	$23700
Variable administrative expenses	$16200	($215400)
Contribition margin		$202600