Omega Company has sales of $300,000 and cost of goods sold of $200,000. The cost of goods sold is a variable cost. The Company incurred $20,000 of fixed operating expenses and $40,000 of variable operating expenses. Based on this information

net income is $100,000 under the gross margin format and $40,000 under the contribution margin format.

the company's gross margin is $100,000, while its contribution margin is $60,000.

net income is $40,000 under the gross margin format and $100,000 under the contribution margin format.

the company's gross margin is $60,000, while its contribution margin is $100,000.