Palmer/Davis Designs sells customized  mobile phone covers. The company’s controller prepared the following income statement for the upcoming monthly management meeting.

Required

a. Assume that Palmer/Davis sells its phone covers for $15 each. How many covers did the company  sell?

b. What is the company’s contribution margin per unit?

c. What is the company’s contribution margin ratio?

Transcribed Image Text:

Sales revenue $87,000 Cost of goods sold Variable selling expenses Variable general and administrative expenses Total variable expenses Contribution margin Fixed selling expenses Fixed general and administrative expenses Total fixed expenses Operating income $24,070 7,540 17,980 49,590 37,410 6,300 18,400 24,700 $12,710