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