Contrlbution Margin

Review the contribution margin income statements for Cover$-$to$-$Cover Company and Biblio Files Company on their respective Income Statements. Comp the following table from the data provided on the income statements. Each company sold $78,800$ units during the year.

Cover$-$to$-$Cover

Company

Contribution margin ratio $($percent$)$

Unit contribution margin

Break$-$even sales $($units$)$

Break$-$even sales $($dollars$)$

BIbllo Flles

Company

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Review the definitions of contribution margin ratio and unit contribution margin. Also review the formulas for break$-$even in terms of units sold and sales dollars.

Income Statement $-$ Cover$-$to$-$Cover

Cover$-$to$-$Cover Company

Contribution Margin Income Statement

For the Year Ended December $31,20$ Y $8$

Sales $$394,000$

Variable costs: