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28 January, 23:12

Delos, Inc. reports the following information for April: Sigma Gamma Units sold 2 comma 000 units 800 units Sales price per unit $ 350 $ 800 Variable manufacturing cost per unit 175 460 Sales commission per unit: Sigma: 4 % of sales price 14 Gamma: 6 % of sales price 48 What is the contribution margin of Sigma? A. $ 262 comma 000 B. $ 350 comma 000 C. $ 672 comma 000 D. $ 322 comma 000

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  1. 28 January, 23:27
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    D. $ 322,000

    Explanation:

    Delos, Inc.

    Contribution margin format income statement

    For sigma

    Sales revenue (2,000 units * $350) = $700,000

    Less: variable manufacturing cost = (2,000 units * $175) = ($350,000)

    Less: sales commission = (700,000 * 4%) = ($28,000)

    Contribution margin for sigma = $700,000 - $350,000 - $28,000

    Contribution margin = $322,000

    Therefore, option D is correct.
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Home » Business » Delos, Inc. reports the following information for April: Sigma Gamma Units sold 2 comma 000 units 800 units Sales price per unit $ 350 $ 800 Variable manufacturing cost per unit 175 460 Sales commission per unit: Sigma: 4 % of sales price 14 Gamma:
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