Omega Company has sales of $326,000 and cost of goods sold of $213,000. The cost of goods sold is a variable cost. The Company incurred $33,000 of fixed operating expenses and $46,500 of variable operating expenses. Based on this information:

Multiple Choice

net income is $113,000 under the gross margin format and $33,500 under the contribution margin format.

the company's gross margin is $113,000, while its contribution margin is $66,500.

the company's gross margin is $66,500, while its contribution margin is $113,000.

net income is $33,500 under the gross margin format and $113,000 under the contribution margin format.