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The following income statements are provided for Li Company's last two years of operation:
2011
2012
Number of units produced and sold
4,100
3,700
Sales revenue
69,700
62,900
Cost of goods sold
(55,760)
(49,960)
Gross margin
13,940
12,940
General, selling and administrative expenses
(12,620)
(11,740)
Net income
$1,320
$1,200
Assuming that cost behavior did not change over the two year period, what is Li Company's contribution margin in 2012?
$610
$1,110
$4,710
$47,560
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