Ashton, Inc. has the following cost data for Product $x,$ and unit product cost using variable costing when production is $1,000$ units, $2,500$ units, and $5,000$ units

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View the unit product cost data.

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Begin by selecting the labels and computing the contribution margin for scenario a$.$ and then compute the contribution margin for scenario $b.$ and $c.$

$\backslash$table$[[$Variable costing,a$.,$b$.,$c$.],[$Net Sales Revenue,$4700000,4700000,4700000],[$Total Variable Costs,$2850000,2850000,2850000],[$Contribution Margin,$1850000,1850000,1850000]]$

Data

$\backslash$table$[[$Direct materials,$$39$ per unit$],[$Direct labor,$58$ per unit$],[$Variable manufacturing overhead,$17$ per unit$],[$Fixed manufacturing overhead,$25,000$ per year$]]$

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Unit product cost data

$\backslash$table$[[,1,000$ units,$2,500$ units $5,5,000$ units$],[$Direct materials,$39,39$$$,39],[$Direct labor,$58,58,58],[$Variable manufacturing overhead,$17,17,17],[$Total unit product cost,$$3,114={?}^{\text{\$}},114]]$

Requirements

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Product $x$ sells for $$188$ per unit. Assume no beginning inventories. Calculate the contribution margin using variable costing when Ashton, Inc.:

a$.$ Produces and sells $1,000$ units.

b$.$ Produces $2,500$ units and sells $1,000$ units.

c$.$ Produces $5,000$ units and sells $1,000$ units.