Beginnings or ending inventories

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Show your calculation for the following questions on the spaceprovided. You can use additional paper if the space availableis not enough. Five points will be awarded for each correctanswer.

1. The followingis Allison Corporation's formal income statement for lastmonth:

Sales $800,000

Less VariableExpenses 300,000

ContributionMargin $500,000

Less FixedExpenses 400,000

NetIncome $100,000

The Company has no beginnings or ending inventories. TheCompany produced and sold 10,000 units last month. What is the Company's contribution margin ratio?

(a) 62.5%

(b) 160.0%

(c) 500%

(d) 20%

Reference no: EM13257883

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