Contribution margin, decision making. Welch Men's Clothing's revenues and cost data for 2017 are as tollows: Revenues $600,000 300,000 300,000 Cost of goods sold (all variable costs) Gross margin...

Q. Compute the contribution margin percentage.

Contribution margin, decision making. Welch Men's Clothing's revenues and cost data for 2017 are<br>as tollows:<br>Revenues<br>$600,000<br>300,000<br>300,000<br>Cost of goods sold (all variable costs)<br>Gross margin<br>Operating costs:<br>Salaries fixed<br>$140,000<br>72,000<br>Sales commissions (12% of sales)<br>Depreciation of equipment and fixtures<br>Store rent ($3,500 per month)<br>Other operating costs<br>Operating income (loss)<br>10,000<br>42,000<br>309,000<br>$ (9,000)<br>45,000<br>Mr. Welch, the owner of the store, is unhappy with the operating results. An analysis of other operating<br>costs reveals that it includes $30,000 variable costs, which vary with sales volume, and $15,000 (fixed) costs.<br>

Extracted text: Contribution margin, decision making. Welch Men's Clothing's revenues and cost data for 2017 are as tollows: Revenues $600,000 300,000 300,000 Cost of goods sold (all variable costs) Gross margin Operating costs: Salaries fixed $140,000 72,000 Sales commissions (12% of sales) Depreciation of equipment and fixtures Store rent ($3,500 per month) Other operating costs Operating income (loss) 10,000 42,000 309,000 $ (9,000) 45,000 Mr. Welch, the owner of the store, is unhappy with the operating results. An analysis of other operating costs reveals that it includes $30,000 variable costs, which vary with sales volume, and $15,000 (fixed) costs.

Jun 10, 2022

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Contribution margin, decision making. Welch Men's Clothing's revenues and cost data for 2017 are as tollows: Revenues $600,000 300,000 300,000 Cost of goods sold (all variable costs) Gross margin...

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