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The follow-ng ncome statement is provided for Ramirez Company in 2018: Sales revenue (2,500 units x $40 unit) Cost of goods sold (varable; 2,500
The follow-ng ncome statement is provided for Ramirez Company in 2018: Sales revenue (2,500 units x $40 unit) Cost of goods sold (varable; 2,500 units x $16 per I.mit Cost of goods sold (fixed) Gross margin Administrative salaries Depreciation Supplkh (2,500 units x $4 per unit) Net income Required: 100,000 40,000) (8,000) 52,000 A12,000) (8,000) (10,000) 22,000 1. What amount was the company's contribution margin? (Show your calcu ations) 2. What is break even point in units? 3. What amount was the company's margin of safety?
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