21) The following income statement is provided for Ramirez Company for the current year:

Sales revenue (2,500 units $40 per unit)	$	100,000
Cost of sold (variable; 2,500 units $16 per unit)		(40,000	)

(8,000	)
52,000 (12,000	)
(8,000	)
(10,000	)

Cost of goods sold (fixed)

Gross margin

Administrative salaries

Depreciation

Supplies (2,500 units $4 per unit)

Net income $ 22,000

What amount was the company's contribution margin?

1. $50,000
2. $22,000
3. $52,000
4. $60,000