t14

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:

Selling price	$	88
Units in beginning inventory		0
Units produced		5,200
Units sold		4,900
Units in ending inventory		300
Variable costs per unit:
Direct materials	$	12
Direct labor	$	23
Variable manufacturing overhead	$	2
Variable selling and administrative expense	$	5
Fixed costs:
Fixed manufacturing overhead	$	161,200
Fixed selling and administrative expense	$	63,700

The total contribution margin for the month under variable costing is:

Multiple Choice

• $64,200

• $249,900

• $225,400

• $98,000