Steele Ltd. has the following information for January, February, and March:

January

February

March

Units produced10 000

10 000

10 000

Units sold7 000

8 500

10 500

Production costs per unit (based on 10 000 units) are as follows:

Direct materials12

Direct labour8

Variable factory overhead6

Fixed factory overhead4

Variable selling and admin. expenses10

Fixed selling and admin. expenses4

There were no beginning inventories for January 2011, and all units were sold for 50. Costs are stable over the three months.

Refer to Figure C7-2. What is the February contribution margin for Steele Ltd. using the variable costing method?