Refer to the information about Ramort Company in QS 19-5. Compute contribution margin under variable costing.
Direct materials...................................$ 10 per unit
Direct labor.......................................$ 12 per unit
Overhead costs for the year
Variable overhead.................................$3 per unit
Fixed overhead per year..............................$40,000
Selling and administrative costs for the year
Variable.............................................$2 per unit
Fixed...................................................$65,200
Normal production level (in units)............20,000 units