Erin Brushwood sells gourmet chocolate chip cookies. The results of her last month of operations are

Erin Brushwood 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?

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