Required informationSkip to question

[The following information applies to the questions displayed below.] Barnes Company reports the following for its product for its first year of operations.

Direct materials	$ 35	per unit
Direct labor	$ 25	per unit
Variable overhead	$ 11	per unit
Fixed overhead	$ 80,000	per year
Variable selling and administrative expenses	$ 2	per unit
Fixed selling and administrative expenses	$ 37,000	per year

The company sells its product for $120 per unit. Compute contribution margin using variable costing assuming the company (a) produces and sells 4,000 units and (b) produces 5,000 units and sells 4,000 units.

rev: 09_30_2021_QC_CDR-376