1. Red and White Company reported the following monthly data:

What is the Red and White's contribution margin for this month if 980 units were sold?

A. $38,000 B. $18,620 C. $24,500 D. $ 21,560 E. $ 50,000 (I THINK IT IS B OR D)

2. Contribution margin ratio is the percent of each sales dollar used to cover variable costs. True or False?

3. A company reports the following information for its first year of operations:

If the company's cost per unit of finished goods using variable costing is $2,375, what is total variable overhead?

A. $237,500 B. $75,000 C. $312,500 D. $406,250 E. $97,500