Erin Brushwood sells gourmet chocolate chip cookies. The results of her last month of operations are as

Question:

Erin Brushwood sells gourmet chocolate chip cookies. The results of her last month of operations are as follows:
Sales revenue ........................................... $50,000
Cost of goods sold (all variable) ..................... 26,250
Gross margin ............................................ 23,750
Selling expenses (75% variable) ...................... 8,000
Administrative expenses (25% variable) ............. 13,000
Operating income ........................................ $ 2,750
Required
a. Prepare a contribution format income statement for Erin.
b. If Erin sells her cookies for $2 each, how many cookies did she sell during the month?
c. What is the per cookie?
d. What is Erin's ratio?
Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...