The PPC department of Ajax shows gross sales of $730,600 for computer supplies and $934,900 for office supplies.The cost of the computer supplies was $534,000 and the cost of the office supplies was $491,400.Direct expenses were $56,600 for the company and indirect expenses were $75,200.What was the contribution margin for the company?

Question

Quizplus · Accepted Answer

The contribution margin is calculated as gross sales minus the cost of goods sold and direct expenses. For computer supplies: $730,600 - $534,000 = $196,600. For office supplies: $934,900 - $491,400 = $443,500. Total contribution margin = $196,600 + $443,500 - $56,600 = $583,500. Indirect expenses are not included in the contribution margin calculation.

The PPC Department of Ajax Shows Gross Sales of $730,600