Silver Corporation Contribution Margin

A monthly income statement and other information for Silver Corp is shown below:

Sales		$ 960,000
Cost of goods sold		420,000
Gross margin		540,000
Selling and administrative expenses:
Selling	200,000
Administrative	75,000	275,000
Net operating income		$ 265,000

Other information:

Average selling price per unit: $60

Selling expenses comprised of: fixed selling expenses plus 8% of sales

Administrative expenses comprised of: fixed administrative expenses plus $2.00 per unit

Using the contribution approach, what is Silver Corp's contribution margin for the month?

You must enter your answer in the following format: $x,xxx

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