Question

The following information is available for Forever Fragrance Company's Southern Territory by salesperson: Garcia Jones Total Sales $30,000 $40,000 $70,000 Variable cost of goods sold 3,600 4,800 8,400 Variable selling expenses: Promotion costs 5,000 8,000 13,000 Sales commissions 4,500 6,000 10,500 What is the contribution margin for Jones?]

Answer 1

Answer:

See below

Explanation:

Contribution margin = Sales value - Variable expenses

Given that;

Sales for Jones = $40,000

Less variable expenses

Cost of goods sold ($4,800)

Contribution margin = $40,000 - $18,800 = $21,200