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Red and White Company reported the following monthly data: Units produced 2,000 units Sales price $25 per unit Direct materials $1 per unit Direct labor
Red and White Company reported the following monthly data:
Units produced | 2,000 units |
Sales price | $25 per unit |
Direct materials | $1 per unit |
Direct labor | $2 per unit |
Variable overhead | $3 per unit |
Fixed overhead | $8,000 in total |
What is Red and White's contribution margin for this month if 980 units were sold ?
a. $38,000
b. $18,620
c. $24,500
d. $50,000
e. $21,560
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