e The Following Income Sta ewconnect.mheducation.com/flow/connect.html Saved The

Question

e The Following Income Sta ewconnect.mheducation.com/flow/connect.html Saved The following income statement is provided for Ramirez Company for the current year Sales revenue (3,500 units x $21.80 per unit) Cost of goods sold (variable; 3,500 units x $9.00 per unit) Cost of goods sold (fixed) Gross margin Administrative salaries Depreciation Supplies (3,500 units × $3.00 per unit) Net income $ 73,500 (31,580) (5,000) 37,000 (7,e90) (10,500) s 14,500 What amount was the company's contribution margin? Multiple Choice $31.500 Next >

Explanation / Answer

Variable cost per unit=($9+$3)=$12/unit

Hence unit contribution margin=Sales-Variable costs

=(21-12)=$9/unit

Hence company's contribution margin=(9*3500)

=$31500

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.