Brick City Company has the following information pertaining to its Stone Division for this year:
$$\begin{array} { l r }
& \underline{\text {Stones}} \
\text { Fixed manufacturing expenses } & \$ 100,000 \
\text { Fixed selling and administrative expenses } & 70,000 \
\text { Sales } & 450,000 \
\text { Direct manufacturing costs (variable) } & 100,000 \
\text { Variable selling and administrative expenses } & 90,000
\end{array}$$ Common expenses for the year are $24,000.
Calculate the Stone Division's contribution margin.

Question

Brick City Company has the following information pertaining to its Stone Division for this year:
 $$\begin{array} { l r } 
& \underline{\text {Stones}} \
\text { Fixed manufacturing expenses } & \$ 100,000 \
\text { Fixed selling and administrative expenses } & 70,000 \
\text { Sales } & 450,000 \
\text { Direct manufacturing costs (variable) } & 100,000 \
\text { Variable selling and administrative expenses } & 90,000
\end{array}$$ Common expenses for the year are $24,000.
Calculate the Stone Division's contribution margin.

Quizplus · Accepted Answer

The Answer of Brick City Company has the following information pertaining to its Stone Division for this year:
 $$\begin{array} { l r } 
& \underline{\text {Stones}} \
\text { Fixed manufacturing expenses } & \$ 100,000 \
\text { Fixed selling and administrative expenses } & 70,000 \
\text { Sales } & 450,000 \
\text { Direct manufacturing costs (variable) } & 100,000 \
\text { Variable selling and administrative expenses } & 90,000
\end{array}$$ Common expenses for the year are $24,000.
Calculate the Stone Division's contribution margin.

Brick City Company Has the Following Information Pertaining to Its