Contribution Margin

What do we mean by contribution margin?  How is it calculated?  Why do you think it’s important to have high contribution margin?

What is the difference between a pro forma income statement, and an actual income statement?  Do good pro forma income statements always equal the actual income statement?  Why or why not?

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The average number of common stock shares outstanding during Year 3 was 880 shares. Net income for the year was $14,900.

Compute each of the following: (Round your answer to 2 decimal places. For percentages, 0.2345 should be entered as 23.45.)