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

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