A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:
|
Selling price
|
$89
|
| |
|
|
Units in beginning inventory
|
0
|
|
Units produced
|
4,300
|
|
Units sold
|
4,000
|
|
Units in ending inventory
|
300
|
| |
|
|
Variable costs per unit:
|
|
|
Direct materials
|
$13
|
|
Direct labor
|
$35
|
|
Variable manufacturing overhead
|
$1
|
|
Variable selling and administrative
|
$10
|
|
Fixed costs:
|
|
|
Fixed manufacturing overhead
|
$77,400
|
|
Fixed selling and administrative
|
$24,000
|
The total contribution margin for the month under variable costing is:
$160,000
$42,600
$120,000
$88,000