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