Reliance Corporation sold 5,200 units of its product at a price of $26 per unit. Total variable cost per unit is $18.00, consisting of $17.20 in variable production cost and $0.80 in variable selling and administrative cost. Compute the contribution margin for the company.

Multiple Choice

• $41,600

• $93,600

• $135,200

• $89,440

• $97,760

  During its first year of operations, the McCormick Company incurred the following manufacturing costs: Direct materials, $6 per unit, Direct labor, $4 per unit, Variable overhead, $5 per unit, and Fixed overhead, $408,000. The company produced 34,000 units, and sold 27,500 units, leaving 6,500 units in inventory at year-end. What is the value of ending inventory under variable costing?

  Multiple Choice

• $97,500

• $175,500

• $78,000

• $408,000

• $505,500