Travis Company reports the following for its single product. Travis produced and sold 33,000 units this year.

Direct materials	$ 43	per unit
Direct labor	$ 49	per unit
Variable overhead	$ 22	per unit
Fixed overhead	$ 133,000	per year
Variable selling and administrative expenses	$ 8	per unit
Fixed selling and administrative expenses	$ 208,600	per year
Sales price	$ 193	per unit

Compute contribution margin for the company under variable costing.

Multiple Choice

• $4,214,400

• $2,607,000

• $2,343,000

• $6,369,000

• $4,423,000