Aaron Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $ 95 Units In beginning Inventory Units produced Units sold Units In ending Inventory 0 3,300 2,900 400 Varlable costs per unit: Direct materlals Direct labor Varlable manufacturing overhead Varlable selling and adminlstrative expense $25 $ 33 6 4 FIxed costs: Flxed manufacturing overhead Fixed selling and administrative expense $52,800 2,500 The total contribution margin for the month under variable costing is: $78300 O $25,500 O $23,000 O $89,900

Question

Business

Colin Hendricks

8 September, 11:25

Aaron Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $ 95 Units In beginning Inventory Units produced Units sold Units In ending Inventory 0 3,300 2,900 400 Varlable costs per unit: Direct materlals Direct labor Varlable manufacturing overhead Varlable selling and adminlstrative expense $25 $ 33 6 4 FIxed costs: Flxed manufacturing overhead Fixed selling and administrative expense $52,800 2,500 The total contribution margin for the month under variable costing is: $78300 O $25,500 O $23,000 O $89,900

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Answers (1)

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Jillian · Answer 1

contribution margin = 78300

Explanation:

solution

we find here contribution margin that is express as

contribution margin = total sales - total variable costs

and

total variable cost per unit = 25 + 33 + 6 + 4 = 68

and

sales = 2900 * 95

sales = 275500

and

variable cost = 2900 * 68

variable cost = 197200

so

contribution margin = total sales - total variable costs

contribution margin = 275500 - 197200

contribution margin = 78300