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Contribution format income statement. Mary Smith sells gourmet chocolate chip cookies. The results of her last month of operations are as follows: Sales revenue. .$50,000

Contribution format income statement.

Mary Smith sells gourmet chocolate chip cookies. The results of her last month of operations are as follows:

Sales revenue. .$50,000

Cost of goods sold (all variable).. $25,575

Gross margin 24,425

Selling expenses (20% variable). 8,000

Admnstrative expns (60% variable) 12,000

Operating Income $4,425

a.) Prepare a contribution format income statement for Mary.

b.) If Mary sells her cookie for $1.60 each, how many cookies did she sell during the month?

c.) What is the contribution margin per cookie?

d.) What is Marys contribution margin ratio?

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