! Required information [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 Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses $ 30 per unit $ 20 per unit $ 10 per unit $ 80,000 per year $ 2 per unit $ 32,000 per year The company sells its product for $140 per unit. Compute contribution margin using variable costing assuming the company (a) produces and sells 2,500 units and (b) produces 3,200 units and sells 2,500 units. Contribution margin using variable costing Sales Variable expenses $ 350,000 (a) 2,500 Units Produced and (b) 3,200 Units Produced 2,500 Units Sold and 2,500 Units Sold 350,000 $ Variable cost of goods sold Contribution margin $ 195,000 $ 195,000