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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 $89 Units in
A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:
Selling price | $89 |
Units in beginning inventory | 0 |
Units produced | 4,300 |
Units sold | 4,000 |
Units in ending inventory | 300 |
Variable costs per unit: | |
Direct materials | $13 |
Direct labor | $35 |
Variable manufacturing overhead | $1 |
Variable selling and administrative | $10 |
Fixed costs: | |
Fixed manufacturing overhead | $77,400 |
Fixed selling and administrative | $24,000 |
The total contribution margin for the month under variable costing is:
$160,000
$42,600
$120,000
$88,000
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