Question - The following income statement for the Kyles Corporation is provided:
Sales revenue (2,000 * $5) 10,000
Variable COGS (2,000 * $1.25) - 2,500
Fixed COGS - 4,000
Gross Margin 3,500
Depreciation - 1,000
Supplies (2,000 * $0.50) - 1,000
Net Income 1,500
If sales increase to 2,500 units, what will be the company's contribution margin?