Bill Company reported the following: Revenues $4,500 Variable manufacturing cost

Question

Bill Company reported the following:

                Revenues                                                                 $4,500

                Variable manufacturing costs                            $ 900

                Variable nonmanufacturing costs                     $ 810

                Fixed manufacturing costs                                  $ 630

                Fixed nonmanufacturing costs                          $ 545

Required:

a.     Compute contribution margin.

b.     Compute contribution margin percentage.

c.     Compute gross margin.

d.    Compute gross margin percentage.

e. Compute operating income.    

Explanation / Answer

Statement showing computations Particulars Amount Revenues          4,500.00 Variable Costs: Variable manufacturing costs              900.00 Variable nonmanufacturing costs                810.00 Total Variable Costs          1,710.00 Contribution = Sales -VC          2,790.00 Fixed manufacturing costs                630.00 Fixed nonmanufacturing costs              545.00 Total Fixed Costs          1,175.00 Operating Income = Cont - FC          1,615.00 Cont Margin % = 2790/4500 *100 62.0% Revenues          4,500.00 Variable manufacturing costs              900.00 Fixed manufacturing costs                630.00 Gross Margin          2,970.00 Gross Margin % 66.00%

Related Questions

Navigate

• Browse (All)
• Browse B
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.