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Required information

Use the following information for the Exercise below. $($Algo$)$

$[$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

$$34$ per unit

$$24$ per unit

$$16$ per unit

Fixed selling and administrative expenses

$$70,000$ per year

$$3$ per unit

$$31,000$ per year

Exercise $19-6($Algo$)$ Computing contribution margin at different production levels LO P$2$

The company sells its product for $$150$ per unit. Compute contribution margin using variable costing assuming the company $($a$)$ produces and sells $2,500$ units and $(b)$ produces $3,500$ units and sells $2,500$ units.

$\backslash$table$[[$Contribution margin using variable costing,$\backslash$table$[[($a$)2,500$ Units Produced and$],[2,500$ Units Sold$]],\backslash$table$[[($b$)3,500$ Units Produced$],[$and $2,500$ Units Sold$]]],[,,],[$Variable expenses,,$],[,,],[,,],[,,],[$Contribution margin,,$]]$