what is mary s contribution margin ratio 613929

Mary Smith sells gourmet chocolate chip cookies. The results of her last month of operations are as follows:

Sales revenue

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Cost of goods sold (all variable)

25,575

Gross margin

Selling expenses (20% variable)

8,000

Administrative expenses (60% variable)

12,000

Operating income

$ 4,425

Required

  1. Prepare a contribution format income statement for Mary.
  2. If Mary sells her cookies for $1.60 each, how many cookies did she sell during the month?
  3. What is the contribution margin per cookie?
  4. What is Mary”s contribution margin ratio?
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