Answer:
<u>Contribution Margin Statement</u>
Sales revenue ($100 x 980) $98,000
Less Variable costs:
cost of goods sold ($58 x 980) $56,840
Commissions expense ($5 x 980) $4,900
Shipping expense ($3 x 980) <u>$2,940</u>
<u>$64,680</u>
Gross margin $33,320
Less Fixed costs:
Salaries expense $7,900
Advertising expense <u>$5,800</u>
<u>$13,700</u>
Net Profit <u>$19,620</u>
The best answer for this question would be A. :)
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Ummm, Government does not fund nonprofits.