15 August, 07:22

# Philadelphia Company has the following information for March: Sales \$486,599 Variable cost of goods sold 205,621 Fixed manufacturing costs 77,725 Variable selling and administrative expenses 50,621 Fixed selling and administrating expenses 34,085 a. Determine the March manufacturing margin. \$ b. Determine the March contribution margin. \$ c. Determine the March income from operations for Philadelphia Company. \$

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1. 15 August, 07:47
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Manufacturing margin is \$203,253

Contribution margin is \$230,357

Net income \$118,547

Explanation:

Manufacturing margin is the sales revenue minus manufacturing costs

Sales revenue \$486,599

Cost of goods sold (\$205,621)

fixed manufacturing cost (\$77,725)

manufacturing margin \$203,253

Contribution margin is sales revenue minus variable costs:

Sales revenue \$486,599

Cost of goods sold (\$205,621)

contribution margin \$230,357

Income is the sales revenue minus all costs incurred:

Sales revenue \$486,599

Cost of goods sold (\$205,621)

fixed manufacturing cost (\$77,725)