Compute contribution margin-compute gross margin

Question

1. Jennifer's Stuffed Animals reported the following:

            Revenues                                              $2,000

            Variable manufacturing costs                $ 600

            Variable nonmanufacturing costs          $ 460

            Fixed manufacturing costs                     $ 300

            Fixed nonmanufacturing costs               $ 280

Required:

a.   Compute contribution margin.

b.   Compute gross margin.

c.   Compute operating income.