The CPC Department of Alex Shows Gross Sales of $735,000

question 52

Multiple Choice

The CPC department of Alex shows gross sales of $735,000 for computer supplies and $935,000 for office supplies. The cost of the computer supplies was $534,000 and the cost of the office supplies was $491,400. Direct expenses were $75,700 for the company and indirect expenses were $75,200. What was the contribution margin for the company?

• A) $644,600
• B) $1,594,300
• C) $1,670,000
• D) $568,900

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Definitions:

Accurate Accounting

The practice of precisely recording, summarizing, and reporting financial transactions.

Accruals

Accounting practices that record revenues and expenses when they are incurred, regardless of when cash is exchanged.

Depreciation

An expense recorded to reduce the book value of an asset due to its usage and wear and tear over time, reflecting its decreasing value.

Accounts Receivable

Money that clients are required to pay to a company for goods or services received but for which payment has not yet been made.