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

Sales revenue. . . . . . . . . . . . . . . . . . . . . . . $50,000

Cost of goods sold (all variable) . . . . . . . . . 26,250

Gross margin . . . . . . . . . . . . . . . . . . . . . . . . .23,750

Selling expenses (75% variable) . . . . . . . . . . 8,000

Administrative expenses (25% variable) . . .13,000

Operating income . . . . . . . . . . . . . . . . . . . . . . $2,750

Required

a. Prepare a contribution format income statement for Erin.

b. If Erin sells her cookies for $2 each, how many cookies did she sell during the month?

c. What is the contribution margin per cookie?

d. What is Erin’s contribution margin ratio?