5-

Garcia Company provides the following information about its product

Number of units	40,000
Total Sales $	300,000
Total Cost $	257,500
Total fixed costs $	70,000

What is the contribution margin ratio?

Select one:

25%

37.5%

10%

12.5%

75%

Select one:

25%

37.5%

10%

12.5%

75%

9-

Damsel Inc. is a large manufacturer of auto tires. Damsel has provided the following information:

Net Sales Revenue	$45,500
Beginning Finished Goods Inventory	1,500
Ending Finished Goods Inventory	10,500
Cost of Goods Manufactured	38,000

Calculate the amount of gross profit reported in Damsel's income statement.

Select one:

$10,500

$29,000

$4,000

$3,500

$36,500