Omega Company has sales of $336,000 and cost of goods sold of $218,000. The cost of goods sold is a variable cost. The Company incurred $38,000 of fixed operating expenses and $49,000 of variable operating expenses. Based on this information Multiple Choice the company's gross margin is $69,000, while its contribution margin is $118,000. net income is $118,000 under the gross margin format and $31,000 under the contribution margin format. the company's gross margin is $118,000, while its contribution margin is $69,000. net income is $31,000 under the gross margin format and $118,000 under the contribution margin format.

Contribution margin is the sales revenue over and above total variable costs. Gross margin in the…

Answered: Omega Company has sales of $336,000 and…

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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Question

Omega Company has sales of $336,000 and cost of goods sold of $218,000. The cost of goods sold is a variable cost. The Company incurred $38,000 of fixed operating expenses and $49,000 of variable operating expenses. Based on this information

Multiple Choice

the company's gross margin is $69,000, while its contribution margin is $118,000.
net income is $118,000 under the gross margin format and $31,000 under the contribution margin format.
the company's gross margin is $118,000, while its contribution margin is $69,000.
net income is $31,000 under the gross margin format and $118,000 under the contribution margin format.