Question
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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