Reference no: EM131460645

Assignment

J Bryant, Ltd. is a local coat retailer. The store's accountant prepared the following income statement for the month ended January 31.

Sales revenue		$ 779,000
Cost of goods sold		334,500
Gross margin		444,500
Less operating expenses
Selling expense	$ 24,720
Administrative expense	51,100	75,820
Net operating income		$ 368,680

Bryant sells its coats for $250 each. Selling expenses consist of fixed costs plus a commission of $6.50 per coat. Administrative expenses consist of fixed costs plus a variable component equal to 5% of sales.

	Total		Per Unit
Sales		779,000.00	250.00
Less: Variable Expenses
Cost of Goods Sold	334,500.00		107.35
Selling Expense	20,254.00		6.50
Administrative Expenses	38,950.00		12.50
Total Variable Expenses		393,704.00	126.35
Contribution Margin		385,296.00	123.65
Less: Fixed Expenses
Selling Expense	4,466.00
Administrative Expenses	12,150.00
Total Fixed Expenses		16,616.00
Operating Income		368,680.00

QUESTION:

1. Operating Expenses = __________x + $_______________

2. If 3100 coats are sold next month, what is the expected total contribution margin? (Round answer to 0 decimal places, e.g. 45,000.)