A manufacturing company that produces a single product has provided the followin

Question

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:

The total contribution margin for the month under variable costing is:

$83,900

$221,400

$135,000

$270,000

Selling price $100 Units sold 5,400 Variable costs per unit: Direct materials $23 Direct labor $25 Variable manufacturing overhead $2 Variable selling and administrative $9 Fixed costs: Fixed manufacturing overhead $137,500 Fixed selling & administrative $70,200

Explanation / Answer

Total contribution margin for the month=5400*(100-23-25-2-9)= $221400 Option B is correct

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