Chapter 21, Problem S21A.19SE

Use the following information for Short Exercises S21A-18 and S21A-19.

Burlington Company reports the following information for June:

Sales Revenue $745,000
Variable Cost of Goods Sold 240,000
Fixed Cost of Goods Sold 186,000
Variable Selling and Administrative Costs 152,000
Fixed Selling and Administrative Costs 65,000

S21A-18 Calculating variable costs

Calculate the contribution margin and operating income for June using variable costing.

S21A-19 Calculating absorption costs

Calculate the gross profit and operating income for June using absorption costing.