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[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	$ 34	per unit
Direct labor	$ 24	per unit
Variable overhead	$ 12	per unit
Fixed overhead	$ 54,000	per year
Variable selling and administrative expenses	$ 2	per unit
Fixed selling and administrative expenses	$ 26,000	per year

The company sells its product for $140 per unit. Compute contribution margin using variable costing assuming the company (a) produces and sells 3,000 units and (b) produces 3,600 units and sells 3,000 units.

Contribution using variable costing	(a) 3,000 Units Produced and 3,000 Units Sold	(b) 3,600 Units Produced and 3,000 Units Sold
Sales	$420,000	$420,000
Variable expenses
options: direct labor, direct materials, fixed overhead, fixed selling and admin. expenses, sales, variable cost of goods sold, variable overhead, variable selling and admin. expenses
options: direct labor, direct materials, fixed overhead, fixed selling and admin. expenses, sales, variable cost of goods sold, variable overhead, variable selling and admin. expense
options: direct labor, direct materials, fixed overhead, fixed selling and admin. expenses, sales, variable cost of goods sold, variable overhead, variable selling and admin. expense
Contribution margin	$204,000	$204,000