Hinge manufacturing's cost of goods sold is $420000 variable and $240000 fixed. the company's selling and administrative expenses are $300000 variable and $360000 fixed. if the company's sales is $1580000, what is its contribution margin

Contribution Margin $ 920,000 Absorption Costing

Contribution Margin $ 860,000 Variable Costing

Explanation:

Hinge Manufacturing

Absorption Costing

Sales $1580000

Cost of Goods sold

Less Variable Costs $420000

Manufacturing Margin $1160,000

Less Fixed Costs $240000

Selling and Administrative expenses

Variable $300,000

Fixed $360,000

Net Income $ 260,000

Hinge Manufacturing

Variable Costing

Sales $1580000

Cost of Goods sold

Less Variable Costs $420,000

Selling and Administrative expenses Variable $300,000

Contribution Margin $ 860,000

Less Fixed Costs $240000

Selling and Administrative expenses Fixed $360,000

Net Income $ 260,000