The income statement for the RUN-84979 company, an atletic shoe retailer, for the first quarter of the year is presented below: RUN-84979 Income Statement Sales $151,200 54,600 96,600 Cost of goods sold Gross margin Selling and administrative expenses Selling Administration $45,400 29,096 74,496 Net operating income $ 22,104 On average, an athletic shoe sells for $72. Variable selling expenses are $14 per athletic shoe, and the remaining selling expenses are fixed. The variable administrative expenses are 8% of sales with the remainder being fixed. How much is the total contribution margin for RUN-84979 for the first quarter?
The income statement for the RUN-84979 company, an atletic shoe retailer, for the first quarter of the year is presented below: RUN-84979 Income Statement Sales $151,200 54,600 96,600 Cost of goods sold Gross margin Selling and administrative expenses Selling Administration $45,400 29,096 74,496 Net operating income $ 22,104 On average, an athletic shoe sells for $72. Variable selling expenses are $14 per athletic shoe, and the remaining selling expenses are fixed. The variable administrative expenses are 8% of sales with the remainder being fixed. How much is the total contribution margin for RUN-84979 for the first quarter?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![The income statement for the RUN-84979 company, an atletic shoe retailer, for the first quarter of the year is presented below:
RUN-84979
Income Statement
Sales
$151,200
54,600
96,600
Cost of goods sold
Gross margin
Selling and administrative expenses
Selling
Administration
$45,400
29,096
74,496
Net operating income
$ 22,104
On average, an athletic shoe sells for $72. Variable selling expenses are $14 per athletic shoe, and the remaining selling expenses
are fixed. The variable administrative expenses are 8% of sales with the remainder being fixed.
How much is the total contribution margin for RUN-84979 for the first quarter?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F96367b51-7a35-48ec-b113-14c01f601e4a%2Fda899be2-aef2-42ee-a55c-d3808cb356d6%2Fpb33zlq_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The income statement for the RUN-84979 company, an atletic shoe retailer, for the first quarter of the year is presented below:
RUN-84979
Income Statement
Sales
$151,200
54,600
96,600
Cost of goods sold
Gross margin
Selling and administrative expenses
Selling
Administration
$45,400
29,096
74,496
Net operating income
$ 22,104
On average, an athletic shoe sells for $72. Variable selling expenses are $14 per athletic shoe, and the remaining selling expenses
are fixed. The variable administrative expenses are 8% of sales with the remainder being fixed.
How much is the total contribution margin for RUN-84979 for the first quarter?
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