Barnes Company reports the following for its product for its first year of operations. Direct materials $ 36 per unit Direct labor $ 26 per unit Variable overhead $ 14 per unit Fixed overhead $ 72,000 per year Variable selling and administrative expenses $ 2 per unit Fixed selling and administrative expenses $ 38,000 per year The company sells its product for $130 per unit. Compute contribution margin using variable costing assuming the company (a) produces and sells 3,600 units and (b) produces 4,000 units and sells 3,600 units.

Required information [The following information applies to the questions displayed below.] Barnes Company reports the following for its product for its first year of operations. The company sells its product for $130 per unit. Compute contribution margin using variable costing assuming the company (a) produces and sells 3,600 units and (b) produces 4,000 units and sells 3,600 units