Answer:
The gross margin for October is $243,500
Explanation:
The following information is given for the October month:
Sales - $ 419,000
Cost of goods sold (all variable) - $ 175,500
Total variable selling expense - $ 23,600
Total fixed selling expense - $ 17,200
Total variable administrative expense- $ 15,400
Total fixed administrative expense - $ 31,400
The gross margin or gross profit is computed by subtracting cost of goods sold from sales value.
In equation it is shown below:
Gross margin = Sales - Cost of Goods sold
= $ 419,000 - $ 175,500
= $243,500
Other information which is given in the question is irrelevant for calculating the gross margin because these items are used for calculating the expenses portion.
Thus, The gross margin for October is $243,500
