The Following Income Statement Is Provided for Ramirez Company in 2013

question 147

Multiple Choice

The following income statement is provided for Ramirez Company in 2013: $\begin{array} { l } \text {Sales revenue ( 2,500 units \( \mathrm{x} \$ 40 \) per unit) } &\$100,000\\ \text {Cost of goods sold (varable; 2,500 units \( \mathrm{x} \$ 16 \) per unit) } &40,000\\ \text { Cost of goods sold (fixed) } &8,000\\ \text { Gross margin} &52,0000\\ \text { Administrative salaries} &12,000\\ \text {Depreciation } &8,000\\ \text {Supplies (2,500 units x \$4 per unit) } &10,000\\ \text { Net income} &\$22,000\\\end{array}$
What amount was the company's contribution margin?

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

Anticipate and overcome customer objections during the sales process.

Practice and improve sales presentation skills through role-playing.

Understand the importance of tailoring sales presentations to the customer's specific needs and buying process.

Recognize the role of effective communication and listening skills in addressing customer reservations and building relationships.

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Definitions:

Consumer Purchases

Transactions made by individuals or households for goods and services for personal use.

Products

Tangible or intangible goods offered by businesses to consumers in exchange for payment.

Budget Line

A graphical representation of all possible combinations of two goods that can be purchased with a given income and prices, illustrating consumer choice.

Money Income

The total amount of monetary earnings or receipts over a specified period, not considering the effects of inflation.