Hinge manufacturing's cost of goods sold is $420000 variable and $240000 fixed. the company's selling and administrative expense

The contribution margin amounts to $860,000. This figure is derived from total sales, which is $1,580,000, subtracting the total variable costs totaling $720,000 (which includes $420,000 for cost of goods sold and $300,000 for selling and administrative expenses). Thus, the final contribution margin is calculated as $1,580,000 - $720,000 = $860,000. The contribution margin represents the revenue remaining after variable costs have been accounted for, assisting in covering fixed costs and enhancing profits past the break-even point.

The contribution margin under absorption costing stands at $920,000, while it is $860,000 with variable costing. For Hinge Manufacturing, the total sales equal $1,580,000. The cost of goods sold details indicate $420,000 in variable costs. The manufacturing margin after deducting the fixed costs of $240,000 shows a contribution margin reaching $1,160,000. Additionally, net income is reported at $260,000.