The following income statement is provided for Barron Company in 2006: Sales revenue (2,500 units x $20 per unit) [$50,000]
Costs of goods sold (variable; 2,500 units x $8 per unit) [20,000]
Costs of goods sold (fixed) [4,000]
Gross Margin [26,000]
administrative salaries [6,000]
Supplies (2,500 x $2 per unit) [5,000]
Net income [$11,000]
What amount was the company's contribution margin?
The following income statement is provided for barron company in 2006:
This solution provides calculations for various question involving a company's contribution margin.