The following income statement is provided for Ramirez Company for the current year: ?Sales revenue (2,500 units × $40 per unit)$100,000 ?Cost of sold (variable; 2,500 × units × $16 per unit) (40,000) ?Cost of goods sold (fixed) (8,000) ?Gross margin 52,000 ?Administrative salaries (12,000) ?Depreciation (8,000) ?Supplies (2,500 units × $4 per unit) (10,000) ?Net income$22,000 ?? What amount was the company's contribution margin?
A. $50,000
B. $52,000
C. $22,000
D. $60,000
Answer: A
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