Question 1
Tally Corp. sells softwares during the recruiting seasons. During the current year, 14,000 software packages were sold resulting in $460,000 of sales revenue, $110,000 of variable costs, and $50,000 of fixed costs.
Contribution margin per software is ________.
◦ $32.86
◦ $25.00
◦ $29.29
◦ $7.86
Question 2
The contribution income statement highlights ________.
◦ gross margin
◦ the segregation of costs into period costs and inventoriable costs
◦ different product lines
◦ variable and fixed costs