contribution margin
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Q: What is the contribution margin for TJVTBP218 Corp. for the second quarter?
Multiple Choice
$244,000
$680,000
$740,000
$200,000
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Transcribed Image Text:TJVTBP218 Corp.'s income statement for the second quarter of the year is below:
TJVTBP218 Corp.
Income Statement
For Quarter Ended June 30
Sales
$880,000
Cost of goods sold
540,000
Gross margin
340,000
Selling and administrative expenses
Selling
$115,000
Administration
134,000 249,000
Net operating income
$ 91,000
On average, a book sells for $55.
TJVTBP218's variable selling expenses are $6 per book with the remaining selling expenses being fixed. (ID#71794)
TJVTBP218's variable administrative expenses are 5% of sales with the remainder being fixed.
Q: What is the contribution margin for TJVTBP218 Corp. for the second quarter?
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