An income statement for Sam's Bookstore for the first quarter of the year is presented...
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Accounting
An income statement for Sam's Bookstore for the first quarter of the year is presented below:
Sam's Bookstore
Income Statement
For Quarter Ended March 31
Sales
$
840,000
Cost of goods sold
520,000
Gross margin
320,000
Selling and administrative expenses
Selling
$
111,000
Administration
126,000
237,000
Net operating income
$
83,000
On average, a book sells for $70. Variable selling expenses are $5 per book with the remaining selling expenses being fixed. The variable administrative expenses are 4% of sales with the remainder being fixed.
The contribution margin for Sam's Bookstore for the first quarter is:
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