Question
Capity Tea Products has an exclusive contract with British Distributors. Calamine and Capity are two brands of teas that are imported and sold to retail
Capity Tea Products has an exclusive contract with British Distributors. Calamine and Capity are two brands of teas that are imported and sold to retail outlets. The following information is provided for the month of March:
Actual | Budget | ||||
Calamine | Capity | Calamine | Capity | ||
Sales in pounds | 3,830 lbs. | 3,980 lbs. | 4,400 lbs. | 3,300 lbs. | |
Price per pound | $3.10 | $3.20 | $2.00 | $3.00 | |
Variable cost per pound | 1.10 | 2.50 | 1.00 | 1.50 | |
Contribution margin | $2.00 | $0.70 | $1.00 | $1.50 |
Budgeted and actual fixed
corporatesustaining
costs are $1,850 and $2,300, respectively. What is the actual contribution margin for the month?
A.
$10,446
B.
$10,183
C.
$12,296
D. $9,960
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