Sales revenue (6,000 units) $150,000 Cost of goods sold: Fixed costs $18,000 Variable costs 30,000 48,000 Gross profit 102,000 Operating expenses: Fixed costs 27,000 Variable costs 12,000 39,000 Operating income $ 63,000 How much is MDI’s total contribution margin?

Sales revenue (6,000 units) $150,000 Cost of goods sold: Fixed costs $18,000 Variable costs 30,000 48,000 Gross profit 102,000 Operating expenses: Fixed costs 27,000 Variable costs 12,000 39,000 Operating income $ 63,000 How much is MDI’s total contribution margin?

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

Sales revenue (6,000 units) $150,000

Cost of goods sold:

Fixed costs $18,000

Variable costs 30,000 48,000

Gross profit 102,000

Operating expenses:

Fixed costs 27,000

Variable costs 12,000 39,000

Operating income $ 63,000

How much is MDI’s total contribution margin?

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