Question

Exhibit 13 Selected Financial Information for Rubbermaid Company, 1992-1997 ($ in millions, except per share data) 1997 1996 1995 1994 1993 1992 $1,960.2 1,285.9 328.8 NET SALES Cost of products sold Selling, general and admin. Other expensesa Income taxes NET INCOME $2,399.7 1,748.4 416.7 0.7 91.4 $ 142.5 $2,355.0 1,649.5 432.1 28.4 92.6 $152.4 $2,344.2 1,673.2 402.6 172.7 35.9 $59.8 $2,169.4 1,465.6 347.9 (11.3) 139.1 $ 228.1 3.6 $1,805.3 1,200.7 337.9 2.7 99.9. $164.1 130.5 $ 211.4 Total Assets Working Capital Total Debt Total Stockholders' Equity $1,923.9 249.1 377.2 1,050.3 $2,054.0 113. 9 557.6 1.013.7 $1,691.5 436.5 127.7 1,135.3 $1,709.2 631.1 33.7 1.285.8 $1,513.1 570.4 34.7 1,130.5 $1,326.6 476.4 44.0 987.6 Source: Rubbermaid Inc., Annual Financials, available from Primark, Global Access. Includes restructuring costs of $16 million in 1997 and $158 million in 1995. Calculate the "contribution margin" for Rubbermaid in 1997: OA) 27.1% OB) 82.2% OC) 74.7% OD) 17.8%

Answer 1

	Contribution Margin for 1997:
	Sale	2,399.70
	Less: Cost of Goods Sold	1,748.40
	Contribution Margin	651.30
	Contribution Margin Ratio	27.1%
	(Contribution Margin/ Sales)
	Answer is A