Delos, Inc. reports the following information for April: SigmaGammaUnits sold2,000 units750 unitsSales price per unit$300$700Variable manufacturing cost per unit200460Sales commission per unit: Sigma:8%of sales price24 Gamma:8%of sales price 56 What is the contribution margin of Sigma? A.$152,000 B.$552,000 C.$200,000 D.$77,000

The contribution margin is calculated as excess of sales revenue over variable expenses.

Answered: Delos, Inc. reports the following…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Delos, Inc. reports the following information for April:

	Sigma	Gamma
Units sold	2,000 units	750 units
Sales price per unit	$300	$700
Variable manufacturing cost per unit	200	460
Sales commission per unit:
Sigma: 8% of sales price	24
Gamma: 8% of sales price		56

What is the contribution margin of Sigma?

$152,000

$552,000

$200,000

$77,000

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