Arthur's Plumbing reported the following:
$$\begin{array} { l r }
\text { Revenues } & \$ 4,500 \
\text { Variable manufacturing costs } & \$ 900 \
\text { Variable nonmanufacturing costs } & \$ 810 \
\text { Fixed manufacturing costs } & \$ 630 \
\text { Fixed nonmanufacturing costs } & \$ 545
\end{array}$$ Required:
a.Compute contribution margin.
b.Compute contribution margin percentage.
c.Compute gross margin.
d.Compute gross margin percentage.
e.Compute operating income.

Question

Arthur's Plumbing reported the following:
 $$\begin{array} { l r } 
\text { Revenues } & \$ 4,500 \
\text { Variable manufacturing costs } & \$ 900 \
\text { Variable nonmanufacturing costs } & \$ 810 \
\text { Fixed manufacturing costs } & \$ 630 \
\text { Fixed nonmanufacturing costs } & \$ 545
\end{array}$$ Required:
a.Compute contribution margin.
b.Compute contribution margin percentage.
c.Compute gross margin.
d.Compute gross margin percentage.
e.Compute operating income.

Quizplus · Accepted Answer

The Answer of Arthur's Plumbing reported the following:
 $$\begin{array} { l r } 
\text { Revenues } & \$ 4,500 \
\text { Variable manufacturing costs } & \$ 900 \
\text { Variable nonmanufacturing costs } & \$ 810 \
\text { Fixed manufacturing costs } & \$ 630 \
\text { Fixed nonmanufacturing costs } & \$ 545
\end{array}$$ Required:
a.Compute contribution margin.
b.Compute contribution margin percentage.
c.Compute gross margin.
d.Compute gross margin percentage.
e.Compute operating income.

Arthur's Plumbing Reported the Following Required: A

Arthur's Plumbing Reported the Following Required:
A