Steven pulled together the following annual revenue and cost information for his small business: total variable costs $7,600, total COGS $6,000, total revenues $23,400, total fixed costs $4,700, and total SG&A $6,300. Determine the contribution margin, gross margin, and operating income for Steven for the year. Contribution margin Gross margin Operating income tA $ tA $ tA $

Steven pulled together the following annual revenue and cost information for his small business: total variable costs $7,600, total COGS $6,000, total revenues $23,400, total fixed costs $4,700, and total SG&A $6,300. Determine the contribution margin, gross margin, and operating income for Steven for the year. Contribution margin Gross margin Operating income tA $ tA $ tA $

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 30E: A company uses charging rates to allocate service department costs to the using departments. The...

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The information provided below was taken from the records of Chotoo Projects for the financialyear ended 31 May 2020.Extract of statement of comprehensive income for the year ended 31 May 2020RRevenue 480 000Direct costs 240 000Rent income 150 000Advertising 4 800Salaries and wages 90 000Rates and taxes 1 200Other operating expenses 80 000Additional information1. Revenue is calculated as direct cost plus 25%.2. Revenue is divided equally each month. Revenue is expected to increase by 18% for thefinancial year ending 31 May 2021.POSTGRADUATE DIPLOMA IN PROJECT MANAGEMENT – ACADEMIC AND ASSESSMENT CALENDARREGENT BUSINESS SCHOOL (RBS) January 2021 173. Fifty percent (50%) of the revenue is for cash and the balance is on credit. Debtorsnormally pay their accounts as follows:• 40% in the month of the invoice, and these debtors are entitled toa 5% discount;• 55% one month after the invoice;The balance is usually written off as bad debts.4. Purchases for June and July are expected to be 30…
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