account The income statement for Howard's Bookstore for the first quarter of the year is presented below:Howard's BookstoreIncome StatementFor Quarter Ended March 31SalesCost of goods soldGross marginSelling and administrative expensesSellingAdministrative$ 119,000B. 266, 700C. 643, 300D. 294, 000$ 910,000560,000142,000261,000Net operating income$ 89,000On average, a book sells for $65. Variable selling expenses are $4 per book with the remaining sellingexpenses being fixed. The variable administrative expenses are 3% of sales with the remainder beingfixed.350,000The contribution margin for Howard's Bookstore for the first quarter is:A. 826, 700

Contribution margin = Sales - cost of goods sold - variable selling and administration expensesWe…

The income statement for Howard's Bookstore for the first quarter of the year is presented below: Howard's Bookstore Income Statement For Quarter Ended March 31 Sales Cost of goods sold Gross margin Selling and administrative expenses Selling Administrative $ 119,000 142,000 $ 910,000 560,000 350,000 261,000 $ 89,000 Net operating income On average, a book sells for $65. Variable selling expenses are $4 per book with the remaining selling expenses being fixed. The variable administrative expenses are 3% of sales with the remainder being fixed. The contribution margin for Howard's Bookstore for the first quarter is: A. 826, 700 B. 266, 700 C. 643, 300 D 294 000

The income statement for Howard's Bookstore for the first quarter of the year is presented below: Howard's Bookstore Income Statement For Quarter Ended March 31 Sales Cost of goods sold Gross margin Selling and administrative expenses Selling Administrative $ 119,000 142,000 $ 910,000 560,000 350,000 261,000 $ 89,000 Net operating income On average, a book sells for $65. Variable selling expenses are $4 per book with the remaining selling expenses being fixed. The variable administrative expenses are 3% of sales with the remainder being fixed. The contribution margin for Howard's Bookstore for the first quarter is: A. 826, 700 B. 266, 700 C. 643, 300 D 294 000

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter5: Accounting For Retail Businesses

Section: Chapter Questions

Problem 41E: Cost of goods sold and related items The following data were extracted from the accounting records...

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