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Aaron Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $ 95 Units in
Aaron Corporation, which has only one product, has provided the following data concerning its most recent month of operations:
Selling price | $ | 95 | |
Units in beginning inventory | 0 | ||
Units produced | 3,300 | ||
Units sold | 2,900 | ||
Units in ending inventory | 400 | ||
Variable costs per unit: | ||
Direct materials | $ | 25 |
Direct labor | $ | 33 |
Variable manufacturing overhead | $ | 6 |
Variable selling and administrative expense | $ | 4 |
Fixed costs: | ||
Fixed manufacturing overhead | $ | 52,800 |
Fixed selling and administrative expense | $ | 2,500 |
The total contribution margin for the month under variable costing is:
$23,000
$78,300
$25,500
$89,900
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