Travis Company reports the following for its single product. Travis produced and sold 20,000 units this year.

Direct materials	$ 30	per unit
Direct labor	$ 36	per unit
Variable overhead	$ 9	per unit
Fixed overhead	$ 120,000	per year
Variable selling and administrative expenses	$ 6	per unit
Fixed selling and administrative expenses	$ 195,600	per year
Sales price	$ 180	per unit

Compute contribution margin for the company under variable costing.

Multiple Choice

$3,600,000

$2,100,000

$1,980,000

$1,860,000

$1,664,400