The Following Income Statement Is Provided for Ramirez Company for the Current

Multiple Choice

The following income statement is provided for Ramirez Company for the current year: $\begin{array}{lr}\text { Sales revenue (2,500 units } \times \$ 40 \text { per unit) } & \$ 100,000\\\text { Cost of goods sold (variable; } 2,500 \text { units } \times \$ 16 \text { per unit) } & (40,000) \\\text { Cost of goods sold (fixed) } & \underline{ (8,000) }\\\text { Gross margin } & 52,000 \\\text { Administrative salaries } & (12,000) \\\text { Depreciation } & (8,000) \\\text { Supplies }(2,500 \text { units } \times \$ 4 \text { per unit) } & \underline{ (10,000) }\\\text { Net income } & \underline{\$ 22,000}\end{array}$ What amount was the company's contribution margin?

A) $50,000
B) $22,000
C) $52,000
D) $60,000