1. A condensed income statement for Tramco follows: (amounts are in thousands of dollars)
Products
Sales (total)
$200
$180
$320
$700
Unit-level Variable Cost (total)
(120)
(160)
(200)
(480)
Contribution Margin
80
20
120
220
Facility-Level Fixed Cost
(25)
(30)
(40)
(95)
Income (Loss)
$ 55
$(10)
$ 80
$125
Tramco
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