Fiene Sales, Inc., a merchandising company, reported sales of 2,200 units in Jun

Question

Fiene Sales, Inc., a merchandising company, reported sales of 2,200 units in June at a selling price of $600 per unit. Cost of goods sold, which is a variable cost, was $364 per unit. Variable selling expenses were $23 per unit and variable administrative expenses were $33 per unit. The total fixed selling expenses were $30,500 and the total administrative expenses were $55,300.

The gross margin for June was:

$310,200

$1,234,200

$396,000

$519,200

$310,200

$1,234,200

$396,000

$519,200

Explanation / Answer

Gross margin=2200*$600-2200*$364

=$519,200

Administrative expenses and selling expenses will absorbed as indirect expenses,so when we are caluculating gross margin we should not considerd.

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