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

Respuesta :

Answer:

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