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Question 20.1: Leone Company has the following information for March: Sales...

Leone Company has the following information for March:

 Sales                                                                             $450,000 

Variable cost of goods sold                                          220,000 

Fixed manufacturing costs                                            80,000 

Variable selling and administrative expenses           50,000 

Fixed selling and administrative expenses                 35,000 

Determine (a) the manufacturing margin, (b) the contribution margin, and (c) income from operations for Leone Company for the month of March.

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a. $230,000 ($450,000 – $220,000)
b. $180,000 ($230,000 – $50,000)
c. $65,000 ($180,000 – $80,000 – $35,000)

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