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Philadelphia Company has the following information for March: Sales $468,926 Variable cost of goods sold 221,229 Fixed manufacturing costs 78,814 Variable selling and administrative expenses 53,981 Fixed selling and administrating expenses 33,064 Determine the March: a. Manufacturing margin $fill in the blank 1 b. Contribution margin $fill in the blank 2 c. Operating income for Philadelphia Company $fill in the blank 3

Respuesta :

Answer and Explanation:

The computation is shown below:

a. The manufacturing margin is

= Sales - variable cost of goods sold

= $468,926 - $221,229

= $247,697

b. The contribution margin is

= manufacturing margin - Variable selling and administrative expenses

= $247,697 - $53,981

= $193,716

c. The operating income is

= Contribution margin - fixed cost

= $193,716 - $788,14 - $33,064

= $81,838

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