Answer:
64% it's the contribution margin of the company.
Explanation:
To find the contribution margin we need to find the gross profit which is the total sales minus the variable cost of goods, te contribution margin doesn't include the fixed costs only the variable ones.
Income Statement
Quantities 400 600 750 1.000
Sales $148,000 $222,000 $277,500 $370,000
Cost of goods sold -$54,000 -$81,000 -$101,250 -$135,000
Contribution Margin $94,000 $141,000 $176,250 $235,000
64% 64% 64% 64%
Fixed Cost -$60,000 -$60,000 -$60,000 -$60,000
Total Cost -$114,000 -$141,000 -$161,250 -$195,000
Operating Income $34,000 $81,000 $116,250 $175,000
