Palmer/Davis Designs sells customized mobile phone covers. The companys controller prepared the following income statement for the

Palmer/Davis Designs sells customized mobile phone covers. The company’s controller prepared the following income statement for the upcoming monthly management meeting.

Required
a. Assume that Palmer/Davis sells its phone covers for $35 each. How many covers did the company sell?
b. What is the company’s contribution margin per unit?
c. What is the company’s contribution margin ratio?

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$175,000 Sales revenue Cost of goods sold Variable selling expenses Variable general and administrative expenses 6,250 Total variable expenses Contribution margin Fixed selling expenses Fixed general and administrative expenses 32,000 Total fixed expenses Operating income $60,000 9,000 75,250 99,750 17,000 49,000 S 50,750