quiz

Computer

Home Office

Equipment

Furniture

      Total

Sales

$1,200,000

$800,000

$2,000,000

Less cost of goods sold

$700,000

$500,000

$1,200,000

Contribution margin

$500,000

$300,000

$800,000

Less direct fixed costs

          Salaries

$175,000

$175,000

$350,000

          Other

$60,000

$60,000

$120,000

Less allocated fixed costs

          Rent

$14,118

$9,882

$24,000

          Insurance

$3,529

$2,471

$6,000

          Cleaning

$4,117

$2,883

$7,000

          President's salary

$76,470

$53,350

$130,000

          Other

$7,058

$4,942

$12,000

Total costs

$340,292

$308,528

$649,000

Net Income

$159,708

($8,528)

$151,180