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A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: Selling price $100 Units sold
A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:
Selling price | $100 | |
Units sold | 5,400 | |
Variable costs per unit: | ||
Direct materials | $23 | |
Direct labor | $25 | |
Variable manufacturing overhead | $2 | |
Variable selling and administrative | $9 | |
Fixed costs: | ||
Fixed manufacturing overhead | $137,500 | |
Fixed selling & administrative | $70,200 |
The total contribution margin for the month under variable costing is:
A. | $83,900 | |
B. | $221,400 | |
C. | $135,000 | |
D. | $270,000 |
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