CHAPTER 2
Sales $540,000 Cost of goods sold 369,000 b Gross margin 171,000 Fixed selling and administrative costs 21,000 Operating profit $150,000 Calculations: aSales – contribution margin = $540,000 – $270,000 = $270,000 bSales – gross margin = $540,000 – $171,000 = $369,000 2.69 (continued) b. ................
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