Question

Exhibit 11 Selected Financial Information for Calphalon Company, 1992-1997 ($ in millions) 1997 1996 1995 1994 1993 1992 NET SALES Cost of products sold Selling, general and admin.a Income taxes NET INCOME $101.9 71.1 26.3 $100.0 54.6 41.7 $81.9 44. 3 31. 2 2.3 $ 4.00 $66.7 3 3.7 2 3.9 $49.7 25.5 18.6 $35.7 17.5 13.6 1.8 $ 2.6 $4.00 $0.9 $394 $2.9 Source: Newell Company aNet of Other (Income)/Expenses. Sum due to rounding Calculate the contribution margin" for Calphalon in 1997: OA) 30.2% OB) 25.8% OC) 2.6% OD) 69.8% Calculate the "net profit margin" for Calphalon in 1997: OA) 2.6% OB) 69.8% OC) 3.8% OD) 22.%

Answer 1

Page No. Date x Calculation & - Contribution (1997) sold! Margin = Net sales - Cost of good - 10109 - 71.1 - 8 30.8. Contribution Contribution marginalool Net sales 30.8 x 100 = = 30-20% option A is correct answer. = Net Income x 100 Net Profit margin (1997) Net Sales X 1oo 2.7 101.9 2.6./ option A is correct answer.