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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 $ 107 Units in

Aaron Corporation, which has only one product, has provided the following data concerning its most recent month of operations:

Selling price $ 107
Units in beginning inventory 0
Units produced 4,800
Units sold 3,890
Units in ending inventory 910

Variable costs per unit:
Direct materials $ 23
Direct labor $ 44
Variable manufacturing overhead $ 5
Variable selling and administrative expense $ 3
Fixed costs:
Fixed manufacturing overhead $ 50,000
Fixed selling and administrative expense $ 3,200

The total contribution margin for the month under variable costing is:

Multiple Choice

  • $74,480

  • $124,480

  • $71,280

  • $136,150

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