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Ellis Corporation, a merchandising company, reported the following results for August: Item Amount Sales $515,000 Cost of goods sold (all variable) $225,000 Total variable selling expense $30,000 Total fixed selling expense $35,000 Total variable administrative expense $20,000 Total fixed administrative expense $45,000 The gross margin for August is: a) $290,000 b) $295,000 c) $275,000 d) $280,000

Ellis Corporation, a merchandising company, reported the following results for August: Item Amount Sales $515,000 Cost of goods sold (all variable) $225,000 Total variable selling expense $30,000 Total fixed selling expense $35,000 Total variable administrative expense $20,000 Total fixed administrative expense $45,000 The gross margin for August is: a) $290,000 b) $295,000 c) $275,000 d) $280,000

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 6EB: Langstons purchased $3,100 of merchandise during the month, and its monthly income statement shows a...
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Ellis Corporation, a merchandising company, reported the following results for August: Item Amount Sales $515,000 Cost of goods sold (all variable) $225,000 Total variable selling expense $30,000 Total fixed selling expense $35,000 Total variable administrative expense $20,000 Total fixed administrative expense $45,000 The gross margin for August is: a) $290,000 b) $295,000 c) $275,000 d) $280,000
Transcribed Image Text:Ellis Corporation, a merchandising company, reported the following results for August: Item Amount Sales $515,000 Cost of goods sold (all variable) $225,000 Total variable selling expense $30,000 Total fixed selling expense $35,000 Total variable administrative expense $20,000 Total fixed administrative expense $45,000 The gross margin for August is: a) $290,000 b) $295,000 c) $275,000 d) $280,000
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