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Barnes Company reports the following for its product for its first year of operations. Direct materials $ 34 per unit Direct labor $ 24 per

Barnes Company reports the following for its product for its first year of operations.

Direct materials $ 34 per unit
Direct labor $ 24 per unit
Variable overhead $ 12 per unit
Fixed overhead $ 54,000 per year
Variable selling and administrative expenses $ 2 per unit
Fixed selling and administrative expenses $ 26,000 per year

The company sells its product for $140 per unit. Compute contribution margin using variable costing assuming the company (a) produces and sells 3,000 units and (b) produces 3,600 units and sells 3,000 units.

Contribution using variable costing (a) 3,000 Units Produced and 3,000 Units Sold (b) 3,600 Units Produced and 3,000 Units Sold
Variable expenses
Contribution margin

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