Philadelphia Company has the following information for March: Sales $476,824 Variable cost of goods sold 212,488 Fixed manufacturing costs 78,357 Variable selling and administrative expenses 49,816 Fixed selling and administrating expenses 38,848 Determine the March: a. Manufacturing margin b. Contribution margin c. Operating income for Philadelphia Company 000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
Philadelphia Company has the following information for March:

- **Sales**: $476,824
- **Variable cost of goods sold**: $212,488
- **Fixed manufacturing costs**: $78,357
- **Variable selling and administrative expenses**: $49,816
- **Fixed selling and administrative expenses**: $38,848

**Determine the March:**

a. **Manufacturing margin**: $ [Input Box]
   
b. **Contribution margin**: $ [Input Box]

c. **Operating income for Philadelphia Company**: $ [Input Box]
Transcribed Image Text:Philadelphia Company has the following information for March: - **Sales**: $476,824 - **Variable cost of goods sold**: $212,488 - **Fixed manufacturing costs**: $78,357 - **Variable selling and administrative expenses**: $49,816 - **Fixed selling and administrative expenses**: $38,848 **Determine the March:** a. **Manufacturing margin**: $ [Input Box] b. **Contribution margin**: $ [Input Box] c. **Operating income for Philadelphia Company**: $ [Input Box]
Expert Solution
Explanation -

Variable Costing -

Under Variable Costing Income Statement all the variable Costs are deducted from the sales to arrive at the Contribution Margin. The contribution Margin is calculated from the sales minus variable costs.

From the Contribution margin fixed costs are deducted to arrive at the Operating Income.

steps

Step by step

Solved in 2 steps with 1 images

Blurred answer
Knowledge Booster
Financial Reporting in Hyperinflationary Economies
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education