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Question 17 Acme Company is a wholesaler of widgets. Acme's operating income for the current month is as follows: Sales revenue Cost of goods sold Gross profit Selling expenses Administrative expenses Operating income $ 160,000 (72,000) $88,000 (20,000) (22,000) $ 46,000 Each widget sells for $40. Variable selling expenses are $3 per widget, and the remainder of the selling expenses are fixed. Variable administrative expenses are 8% of sales revenue, and the remainder of the administrative expenses are fixed. What is the company's contribution margin? Round to the nearest whole dollar amount and do not enter a dollar sign or a decimal point (e.g.. enter 89, not $89.00).

Question 17 Acme Company is a wholesaler of widgets. Acme's operating income for the current month is as follows: Sales revenue Cost of goods sold Gross profit Selling expenses Administrative expenses Operating income $ 160,000 (72,000) $88,000 (20,000) (22,000) $ 46,000 Each widget sells for $40. Variable selling expenses are $3 per widget, and the remainder of the selling expenses are fixed. Variable administrative expenses are 8% of sales revenue, and the remainder of the administrative expenses are fixed. What is the company's contribution margin? Round to the nearest whole dollar amount and do not enter a dollar sign or a decimal point (e.g.. enter 89, not $89.00).

FINANCIAL ACCOUNTING
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 17 Acme Company is a wholesaler of widgets. Acme's operating income for the current month is as follows: Sales revenue Cost of goods sold Gross profit Selling expenses Administrative expenses Operating income $ 160,000 (72,000) $88,000 (20,000) (22,000) $ 46,000 Each widget sells for $40. Variable selling expenses are $3 per widget, and the remainder of the selling expenses are fixed. Variable administrative expenses are 8% of sales revenue, and the remainder of the administrative expenses are fixed. What is the company's contribution margin? Round to the nearest whole dollar amount and do not enter a dollar sign or a decimal point (e.g.. enter 89, not $89.00).
Transcribed Image Text:Question 17 Acme Company is a wholesaler of widgets. Acme's operating income for the current month is as follows: Sales revenue Cost of goods sold Gross profit Selling expenses Administrative expenses Operating income $ 160,000 (72,000) $88,000 (20,000) (22,000) $ 46,000 Each widget sells for $40. Variable selling expenses are $3 per widget, and the remainder of the selling expenses are fixed. Variable administrative expenses are 8% of sales revenue, and the remainder of the administrative expenses are fixed. What is the company's contribution margin? Round to the nearest whole dollar amount and do not enter a dollar sign or a decimal point (e.g.. enter 89, not $89.00).
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