$($Module $2)$

The accounting records for Grant Manufacturing Company included the following cost information relating to its first year of operations:

Direct materials

Direct labor

Fixed manufacturing overhead

Variable manufacturing overhead

$$22,500$

$$55,000$

$$35,000$

$$25,000$

Assume the company produced $10,000$ units of inventory and sold $7,500$ of these units during the year for $$131,250.$ Under variable costing, what is the contribution margin for the year? $($Ignore selling and administrative expenses.$)$

Multiple Choice

$$39,500.$

$$58,375.$

None of these answers are correct.

$$2,500$

$8$ of $10$

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