Question
A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: Selling price ........................................................... $100 Units
A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:
Selling price ........................................................... $100
Units in beginning inventory .......................... 0
Unit produced ...................................................... 5,500
Unit sold ................................................................. 5,400
Unit in ending inventory ................................... 100
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 and administrative ................ $ 70,200
The total contribution margin for the month under variable costing is:
Select one:
a. $270,000
b. $135,000
c. $83,900
d. $221,400
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