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

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.

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