Salomon Marketing, Incorporated a merchandising company, reported sales of $1,555,500 and cost of goods sold of $1,025,100 for December. The company's total variable selling expense was $96,900; its total fixed selling expense was $34,300; its total variable administrative expense was $71,400; and its total fixed administrative expense was $100,100. The cost of goods sold in this company is a variable cost.The contribution margin for December is:

Question

Quizplus · Accepted Answer

Contribution Margin = Sales - Variable Costs
Variable Costs = Cost of Goods Sold + Total Variable Selling Expense + Total Variable Administrative Expense
Variable Costs = $1,025,100 + $96,900 + $71,400
Variable Costs = $1,193,400

Contribution Margin = $1,555,500 - $1,193,400
Contribution Margin = $362,100

Therefore, the contribution margin for December is $362,100. Option D is the correct answer.

Salomon Marketing, Incorporated a Merchandising Company, Reported Sales of $1,555,500