Steam Corporation has the following managerial perspective of profitability for the current

month:

Revenues

$10,000

Variable Costs

Direct Materials (Variable)

$1,000

Direct Labor (Variable)

$1,000

Variable Overhead

$500

Variable Operating Expenses

$1,000

Contribution Margin

$6,500

Fixed Overhead

$1,500

Fixed Operating Expenses

$3,000

Profit

$2,000

Gina, a manager at Steam Corp., is preparing a profitability report for the lending officer at

Steam Corp's bank.

Using the provided information, which of the following statements are true about the financial

perspective? (Check all that apply.)

Total cost of goods sold will be $8,000.

Gross margin will be $7,500.

Gross margin will be $6,000.

Profit will be $6,000.