Waldo Company produces one product. The following are the data for the current month:
Selling price per unit ................................................ $80
Variable cost per unit
Direct materials ....................................................... $21
Direct labor ........................................................... 10
Variable manufacturing overhead ................................ 3
Variable selling and administrative (per unit sold)............. 6
Fixed costs
Manufacturing overhead.......................................... $76,000
Selling and administrative ....................................... 58,000
Units
Beginning inventory ....................................... 0
Month's production ....................................... 5,000
Number sold ....................................... 4,500
Ending inventory ............................................... 500
The contribution margin is
a. $180,000
b. 226000
c. 46000
d. 207000