1: The following information applies for Zap Company:

Sales revenue

$1,350,000

Cost of goods sold

$450,000

Operating expenses

$350,000

The cost of goods sold consists of $375,000 variable and $75,000 fixed. The operating expenses consist of $50,000 variable and $300,000 fixed. The company would show which amount on their Contribution Margin Income Statement?

a)Contribution margin of $925,000

b) Gross profit of $550,000

c) Contribution margin of $900,000

Gross profit of $900,000

2: Kimochi sells stuffed animals for $200 each, the variable costs per stuffed animal is $130. Fixed costs are $420,000. If Kimochi wants to earn $35,000 in net income, how many stuffed animals must be sold?

a) 6,500

b) 6,000

c) 5,000

d) 5,500

3:

Problem -SoHo Co. produces and sells a jeweled handbag to retail stores in the New York area. In 2020, the company sold 51,000 units of the handbag. Sales and costs for that level of sales is as follows: Sales $2,040,000 Variable costs 1.632.000 Contribution margin 408,000 Fixed costs 127,500 Net income 280.500 Required: Prepare a CM income statement for December 31, 2021 for SoHo. Assume that the company expects total sales to be 70,000 units for 2021 with no change in unit sales price or unit variable cost. (Round your figures to whole dollars and show your work.)