An income statement for Sam's Bookstore for the first quarter of the year is presented below: Sam's Bookstore Income Statement For Quarter Ended March 31 Sales $ 910,000 Cost of goods sold 565,000 Gross margin 345,000 Selling and administrative expenses Selling $ 120,000 Administrative 144,000 264,000 Net operating income $ 81,000 On average, a book sells for $70. Variable selling expenses are $5 per book with the remaining selling expenses being fixed. The variable administrative expenses are 4% of sales with the remainder being fixed. The contribution margin for Sam's Bookstore for the first quarter is:
An income statement for Sam's Bookstore for the first quarter of the year is presented below: Sam's Bookstore Income Statement For Quarter Ended March 31 Sales $ 910,000 Cost of goods sold 565,000 Gross margin 345,000 Selling and administrative expenses Selling $ 120,000 Administrative 144,000 264,000 Net operating income $ 81,000 On average, a book sells for $70. Variable selling expenses are $5 per book with the remaining selling expenses being fixed. The variable administrative expenses are 4% of sales with the remainder being fixed. The contribution margin for Sam's Bookstore for the first quarter is:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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An income statement for Sam's Bookstore for the first quarter of the year is presented below:
| Sam's Bookstore | ||
| Income Statement | ||
| For Quarter Ended March 31 | ||
| Sales | $ 910,000 | |
|---|---|---|
| Cost of goods sold | 565,000 | |
| Gross margin | 345,000 | |
| Selling and administrative expenses | ||
| Selling | $ 120,000 | |
| Administrative | 144,000 | 264,000 |
| Net operating income | $ 81,000 |
On average, a book sells for $70. Variable selling expenses are $5 per book with the remaining selling expenses being fixed. The variable administrative expenses are 4% of sales with the remainder being fixed.
The contribution margin for Sam's Bookstore for the first quarter is:
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