Below is an incomplete contribution margin income statement for Barry's Coffee Cakes. Use this information to answer the following questions.

BARRY'S COFFEE CAKES
Contribution Margin Income Statement
	20,000 units				25,000 units
	Total				Total		Per Unit		Percents of Sales
Sales revenue	$	150,000
Less: Variable costs		50,000
Contribution margin		100,000
Less: Fixed costs		30,000
Net operating income	$	70,000

Knowledge Check 01

What is the unit contribution margin?

a) $7.50

b) $2.50

c) $5.00

d) $3.00

Knowledge Check 02

What is the contribution margin ratio?

a) 33%

b) 50%

c) 40%

d) 67%

Knowledge Check 03

If there is no change in fixed costs, what will the net operating income be when 25,000 units are sold?

a) $95,000

b) $125,000

c) $70,000

d) $87,500