The Following Income Statement Is Provided for Ramirez Company for the Current

question 82

Multiple Choice

The following income statement is provided for Ramirez Company for the current year: $\begin{array}{|l|r|}\hline \text { Sales revenue }(2,500 \text { units } x \$ 40 \text { per unit }) & \$ \quad 100,000\\\hline \text { Cost of goods sold (varable; } 2,500 \text { units x } \$ 16 \text { per unit) } & (40,000) \\\hline \text { Cost of goods sold (fixed) } & (8,000) \\\hline \text { Gross margin } & 52,000 \\\hline \text { Administrative salaries } & (12,000) \\\hline \text { Depreciation } & (8,000) \\\hline\text { Supplies }(2,500 \text { units x } \$ 4 \text { per unit) } & (10,000) \\\hline \text { Net income } &\$ \quad 22,000\\\hline\end{array}$ What amount was the company's contribution margin?

• A) $50,000
• B) $22,000
• C) $52,000
• D) $60,000

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Definitions:

Ligaments

Strong, fibrous tissues that connect bones to other bones, providing stability and support in joints.

Superficial Portion

The part of a structure or organ that is closest to the surface of the body.

Pseudostratified Columnar

A type of epithelial tissue with cells of varying heights that appear stratified but each cell touches the basal lamina.

Stratified Squamous

A type of epithelial tissue composed of several layers of flat cells designed to protect underlying tissues in areas subject to abrasion and friction.