Company had the following data: Planned and actual production 40,000 units Sales: 37,000 units at $15 per

Question:

Company had the following data:

Planned and actual production 40,000 units

Sales: 37,000 units at $15 per unit

Production costs:

Variable $4 per unit

Fixed $260,000

Selling and admin costs:

Var $1.00 per unit

Fixed: $32,000

The contribution margin that the company would disclose on an absorption-costing income statement:

a. 0

b. $147,000

c. $166,500

d. 370,000

e. other amount

Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...