TB MC Qu. 06-119 (Algo) Travis Company reports the...

Travis Company reports the following for its single product. Travis produced and sold 32,000 units this year.

Direct materials	$ 42	per unit
Direct labor	$ 48	per unit
Variable overhead	$ 21	per unit
Fixed overhead	$ 132,000	per year
Variable selling and administrative expenses	$ 6	per unit
Fixed selling and administrative expenses	$ 207,600	per year
Sales price	$ 192	per unit

Compute contribution margin for the company under variable costing.

Multiple Choice

• $4,068,000

• $3,860,400

• $2,400,000

• $6,144,000

• $2,592,000