The following data relate to Lobo Corporation for the year just ended:
Sales Revenue $750,000
Cost of Goods Sold:
Variable Portion $370,000
Fixed Portion $110,000
Variable Selling & Admin. Cost $50,000
Fixed Selling & Admin. Cost &75,000
| Which of the following statements is correct? |
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A. Lobo’s variable costing income statement would reveal a gross margin of $270,000. |
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B. Lobo’s variable costing income statement would reveal a contribution margin of $330,000. |
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C. Lobo’s absorption costing income statement would reveal a contribution margin of $330,000. |
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D. Lobo’s absorption costing income statement would reveal a gross margin of $330,000. |
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E. Lobo’s absorption costing income statement would reveal a gross margin of $145,000. |
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