Explore BrainMass

Explore BrainMass

    A Company's Contribution Margin

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    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]
    Depreciation [4,000]
    Supplies (2,500 x $2 per unit) [5,000]
    Net income [$11,000]
    What amount was the company's contribution margin?

    © BrainMass Inc. brainmass.com June 3, 2020, 9:14 pm ad1c9bdddf
    https://brainmass.com/business/income-statement/company-contribution-margin-172632

    Solution Preview

    The following income statement is provided for barron company in 2006:
    Sales ...

    Solution Summary

    This solution provides calculations for various question involving a company's contribution margin.

    $2.19

    ADVERTISEMENT