Calculation of Marginal Cost

Calculation of Marginal Cost.

Plus:   Sales             xxx

Less:   Variable cost

    a.Direct Material Cost xxx

    b.Direct Labour   Cost        xxx

   c. Variable Manufacturing overheads xxx

------------

     Total cost of manufacturing 

-------------

Plus :Begining cost of inventory               xxx

 Less:   Ending cost of inventory            xxx

  -----------

     Cost of good manuf & sold       xxx  

      

Contribution(Manuf..) xxx

 Less :  Varaible non-product costs

 Selling and distribution cost xxx

Admin cost xxx

other cost xxx

---------------------

Contribution Final XXX  

Less : Fixed Costs:

Fixed prod costs xxx

Fixed non-prod cost xxx

Net income b4 income tax xxx

Less : Income Taxes xxx

Net Income after income tax xxx

      

 

what is Variable cost ? 

what is marginal cost ? advantages of marginal cost ? Cost calculations ?

Contribution , variable manufacturing overheads.