ABC Manufacturing produces metal lampposts. The company's income statements for the last two years are given below. The company has no beginning or ending inventories. Last Year This Year Units sold. 60,000 85,000 Sales. 1,440,000. 2,040,000 Less cost of goods sold. 785,000 1,060,000 Gross margin 655,000 980,000 Less operating expenses. 237,000 312,000 Net income 418,000. 668,000 Compute the company's contribution margin for this year. a) 900,000 b) 790,000 c) 715,000 d) 850,000
ABC Manufacturing produces metal lampposts. The company's income statements for the last two years are given below. The company has no beginning or ending inventories.
Last Year This Year
Units sold. 60,000 85,000
Sales. 1,440,000. 2,040,000
Less cost of goods sold. 785,000 1,060,000
Gross margin 655,000 980,000
Less operating expenses. 237,000 312,000
Net income 418,000. 668,000
Compute the company's contribution margin for this year.
a) 900,000
b) 790,000
c) 715,000
d) 850,000
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