XY Company estimated its sales for the coming 4 months as follows: October $10,0
ID: 2563186 • Letter: X
Question
XY Company estimated its sales for the coming 4 months as follows:
October
$10,000
November
$11,000
December
$15,000
January
$9,000
Estimated cost of goods sold
55.00%
Other variable costs (commissions)
20.00%
Estimated fixed costs
$2,500.00
The company maintains its inventory at twice it estimated sales requirements
(sales requirements are cost of goods sold of the next month)
The beginning inventory
$9,000
Contribution margin for November is
$2,500
$2,750
$3,750
$1,500
XY Company estimated its sales for the coming 4 months as follows:
October
$10,000
November
$11,000
December
$15,000
January
$9,000
Estimated cost of goods sold
55.00%
Other variable costs (commissions)
20.00%
Estimated fixed costs
$2,500.00
The company maintains its inventory at twice it estimated sales requirements
(sales requirements are cost of goods sold of the next month)
The beginning inventory
$9,000
Explanation / Answer
Answer is $2750
Particulars Amt Sales 11000 Less: Cost of Goods Sold(11000 x 55%) 6050 Less: COmmission
(11000 x 20%) 2200 Contribution Margin 2750
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