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: $\begin{array}{lr}\text { Sales revenue (2,500 units } \times \$ 40 \text { per unit) } & \$ 100,000\\\text { Cost of goods sold (variable; } 2,500 \text { units } \times \$ 16 \text { per unit) } & (40,000) \\\text { Cost of goods sold (fixed) } & \underline{ (8,000) }\\\text { Gross margin } & 52,000 \\\text { Administrative salaries } & (12,000) \\\text { Depreciation } & (8,000) \\\text { Supplies }(2,500 \text { units } \times \$ 4 \text { per unit) } & \underline{ (10,000) }\\\text { Net income } & \underline{\$ 22,000}\end{array}$ 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:

Concentration Ratios

Measures that indicate the extent of market control by the largest firms within an industry, used to assess competitiveness.

Foreign Imports

Goods and services brought into one country from another for sale, which can impact the domestic economy in terms of production, employment, and price levels.

Top Ten Firms

The largest ten companies in a given industry or market based on criteria such as revenue, market capitalization, or number of employees.

Non-OPEC Nations

Countries that are major oil producers but are not members of the Organization of the Petroleum Exporting Countries (OPEC).