Question

Philadelphia company has the following information for march: sales $481,496 variable cost of goods sold 205,317 fixed manufacturing costs 78,355 variable selling and administrative expenses 49,029 fixed selling and administrating expenses 34,025

determine the march manufacturing margin.

Answer 1

The manufacturing margin for the Philadelphia company in March is $276,179, calculated by subtracting the variable cost of goods sold ($205,317) from the sales ($481,496).

Step-by-step explanation:

To calculate the manufacturing margin for the Philadelphia company for the month of March, we need to consider sales and variable costs of goods sold (VCOGS). The manufacturing margin represents the gross profit made from producing goods before accounting for selling and administrative expenses. It's calculated as sales minus variable costs of goods sold. Fixed manufacturing costs are not considered in this calculation since they remain constant regardless of the output level.

Here's the step-by-step calculation:

1. Determine sales: $481,496.
2. Subtract variable cost of goods sold: $481,496 - $205,317 = $276,179.

The manufacturing margin for March is therefore $276,179.

Note that neither fixed manufacturing costs nor variable and fixed selling and administrative expenses are subtracted to obtain the manufacturing margin, as they are accounted for in different stages of the profit calculation.