BARRY'S COFFEE CAKES Contribution Margin Income Statement 20,000 units 25,000 units Percents of Sales Per Unit Sales revenue Less: Variable costs Contribution margin Less: Fixed costs Net operating income Total $150,000 50,000 100,000 30,000 $ 70,000 Knowledge Check 01 What is the unit contribution margin? $7.50 $2.50 $5.00 $3.00 Knowledge Check 02 What is the contribution margin ratio? 33% 50% 40% 67% Knowledge Check 03 If there is no change in fixed costs, what will the net operating income be when 25,000 units are sold? $95,000 $125,000 $70,000 $87,500