P2-61 (similar to) Question Help Wink Light Company is a provider of imaging technology products and services to the photographic, graphic communications, and health-care markets, A condensed 201 1 income statement follows (in millions) (Click the icon to view the data ) Assume that $1,600 million of the cost of goods sold is a fixed cost representing depreciation and other production costs that do not change with the volume of production. In addition, $1,900 million of the other operating expenses is fixed Requirements Incorrect: 1. Compute the total contribution margin for 2011 and the contribution margin percentage, Explain why the contribution margin differs from the gross margin 2. Suppose that sales for Wink Light are predicted to increase by 10% and that the cost behavior is expected to continue. Compute the predicted operating income (loss) 3. What assumptions were necessary to compute the predicted operating income in requirement 2? 7/1) Requirement 1. Compute the total contribution margin for 2011 and the contribution margin percentage, Explain why the contribution margin differs from the gross margin Begin by determining the formula to calculate the contribution margin, Then, enter the amounts in the formula to compute the contribution margin of Wink Light (6/2) Company Sales Total variable expenses Contribution margin Data Table - X million million million Sales 9.384 Cost of goods sold 7.444 Gross margin 1.940 Other operating expenses 2,756 Enter any number in the edit fields and then click Check Answer. Loss from continuing operations S (815)