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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

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

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