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The following income statements are provided for Li Company's last two years of operation: The following income statements are provided for Li Company's last two
The following income statements are provided for Li Company's last two years of operation:
The following income statements are provided for Li Company's last two years of operation:
| 2012 | 2013 |
Number of units produced and sold | 4,500 | 4,100 |
Sales revenue | $69,750 | $63,550 |
Cost of goods sold | 41,700 | 38,000 |
| ||
Gross margin | 28,050 | 25,550 |
General, selling and administrative expenses | 17,500 | 16,300 |
| ||
Net income | $10,550 | $9,250 |
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Assuming that cost behavior did not change over the two year period, what is Li Company's contribution margin in 2013?
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