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What will be the company contribution margin

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Reference no: EM131891176

Problem: The following income statement for the Kyles Corporation is provided:

Sales revenue (2,000 * $5) 10,000

Variable COGS (2,000 * $1.25) - 2,500

Fixed COGS - 4,000

Gross Margin 3,500

Depreciation - 1,000

Supplies (2,000 * $0.50) - 1,000

Net Income 1,500

If sales increase to 2,500 units, what will be the company's contribution margin?

Reference no: EM131891176

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