2-57 Gross Margin and Contribution Margin Eastman Kodak Company is a provider of imaging technology products and services to the photographic, graphic communications, and health-care markets. A condensed 2008 Assume that $1,400 million of the cost of goods sold is a fixed cost representing depreciation and other production costs that do not change with the volume of production. In addition, $2,000 million of the other operating expenses is fixed. 1. Compute the total contribution margin for 2008 and the contribution margin percentage. Explain why the contribution margin differs from the gross margin. 2. Suppose that sales for Eastman Kodak were predicted to increase by 10% in 2009 and the cost behavior was expected to continue in 2009 as it did in 2008. Compute the predicted operating income (loss) for 2009. 2-57 Gross Margin and Contribution Margin Eastman Kodak Company is a provider of imaging technology products and services to the photographic, graphic communications, and health-care markets. A condensed 2008 Assume that $1,400 million of the cost of goods sold is a fixed cost representing depreciation and other production costs that do not change with the volume of production. In addition, $2,000 million of the other operating expenses is fixed. 1. Compute the total contribution margin for 2008 and the contribution margin percentage. Explain why the contribution margin differs from the gross margin. 2. Suppose that sales for Eastman Kodak were predicted to increase by 10% in 2009 and the cost behavior was expected to continue in 2009 as it did in 2008. Compute the predicted operating income (loss) for 2009