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Company O produced 300 units in 2021 and sold 280 units at $40 each. Other information for Company O is as follows: Direct Materials $5/unit

Company O produced 300 units in 2021 and sold 280 units at $40 each. Other information for Company O is as follows:

Direct Materials $5/unit Variable Selling and Administrative $1.50/unit
Direct Labor $10/unit Fixed Overhead $600
Variable Overhead $3/unit Fixed Selling and Administrative $400

What is Company O's Contribution Margin?

  • A.

    $6,160

  • B.

    $5,740

  • C.

    $5,040

  • D.

    $5,600

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