Delongis Corporation, a merchandising company, reported the following results for June: Cost of goods sold is a variable cost in this company.The contribution margin for June is:

Question

Delongis Corporation, a merchandising company, reported the following results for June:  Cost of goods sold is a variable cost in this company.The contribution margin for June is:

Quizplus · Accepted Answer

Contribution margin is calculated as Sales - Variable Costs. Given the data, we can calculate the contribution margin as follows:

Contribution margin = Sales - Cost of goods sold - Variable selling and administrative expenses 
Contribution margin = $726,000 - $462,000 - $139,200 
Contribution margin = $124,800

Therefore, the contribution margin for June is $124,800, which is option D.

Delongis Corporation, a Merchandising Company, Reported the Following Results for June