Alpha Company manufactures a single product, the Whiz Mixer kitchen appliance, which it sells for $34 per unit. Information about costs, production, and sales for the month of March is provided below: Variable Costs Fixed Costs Direct materials $11.00/unit Manufacturing overhead $26,000 Direct labour $4.00/unit Selling and Administration $11,000 Variable manufacturing overhead $2.75/unit Units produced in period 5,000 Variable selling/administration $1.00/unit Units sold in period 5,000 Beginning inventory $0 What is the contribution margin for Alpha Company under a variable costing system?

Answer

a.$170,000

b.$56,750

c.$144,000

d.$76,250