Philadelphia Company has the following information for March:

Sales $450,000

Variable cost of goods sold 240,000

Fixed manufacturing costs 70,000

Variable selling and administrative expenses 52,000

Fixed selling and administrating expenses 35,000

Determine the March:

a. Manufacturing margin $

b. Contribution margin $

c. Income from operations for Philadelphia Company

a. Manufacturing margin $

Sales 450,000

Less: Fixed manufacturing cost 70,000

Manufacturing margin 380,000

b, Contribution margin $

Sales 450,000

Less: variable costs:

Variable cost of goods sold 240,000

Variable selling and administrative expenses 52,000

Contribution margin 158,000

c. Income from operations $

Contribution margin 158,000

Less: Fixed manufacturing cost 70,000

Fixed selling and administrative expenses 35,000

Income from operations 53,000

Explanation:

Manufacturing margin is the excess of sales over fixed manufacturing cost.

Contribution margin is the excess of sales over total variable costs.

Income from operation is the excess of contribution margin over total fixed costs.