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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

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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