The following income statement is provided for Ramirez Company for the current year: What amount was the company's contribution margin?
A) $50,000
B) $22,000
C) $52,000
D) $60,000

Name: The following income statement is provided for Ramirez Company for the current year: What amount was the company's contribution margin? A) $50,000 B) $22,000 C) $52,000 D) $60,000
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Question

The following income statement is provided for Ramirez Company for the current year:  What amount was the company's contribution margin?
A) $50,000 
B) $22,000 
C) $52,000 
D) $60,000

Quizplus · Accepted Answer

Contribution margin = Revenues − Variable expenses
Contribution margin = $100,000 − ($40,000 + $10,000) = $50,000

The Following Income Statement Is Provided for Ramirez Company for the Current