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Swan Textiles Inc. produces and sells a decorative pillow for $97.50 per unit. In the first month of operation, 2,300 units were produced and 1,900
Swan Textiles Inc. produces and sells a decorative pillow for $97.50 per unit. In the first month of operation, 2,300 units were produced and 1,900 units were sold. Actual fixed costs are the same as the amount budgeted for the month. The fixed cost budget is based on the production of 2,300 units. Other information for the month includes: Variable manufacturing costs $22.00 per unit Variable marketing costs - $7.00 per unit Fixed manufacturing costs - $16 per unit Administrative expenses, all fixed $20.00 per unit Ending inventories: Direct materials - 0 - WIP - 0 - Finished goods - 400 units What is the contribution margin using variable costing? A. $134,650 B. $143,450 C. $171,950 D. $130,150
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