Comparison of the Contribution Income Statement with the Traditional Income Statement Traditional Format Sales (10,000 Cups) Cost of goods sold Gross margin $ 100,000 70,000 $ 30,000 Selling & admin. expense 20,000 Net operating income $ 10,000 Contribution Format Sales (10,000 Cups) $ 100,000 Variable expenses Contribution margin 60,00 $ 40,000 30,000 $ 10,000 Fixed expenses Net operating income Pamela Co. sells coffee. The above table summarizes the income statements of the company. Now assume that after buying a new automated coffee machine, overall fixed costs are surprisingly reduced by 30%. On this information alone, now, how many cups should the company sell to earn $10,000 profits?

Pamela Co sells coffee. The above table summarizes the income statements of the company. Now assume that after buying a new avtomated coffee machine, overall fixed costs are surprisingly reduced by 30%. On this information alone, now, how many cups should the company sell to earn $10.000 profits