Required Information

Use the following information for the Exercise below. $($Algo$)$

$[$The following information applies to the questions displayed below.$]$

Barnes Company reports the following for its product for its first year of operations.

Direct materials

Direct labor

Variable overhead

Fixed overhead

Variable selling and administrative expenses

Fixed selling and administrative expenses

$$34$ per unit

$$24$ per unit

$$12$ per unit

$$72,$ eee per year

$$2$ per unit

$$36,$ eee per year

Exercise $19-6($Algo$)$ Computing contribution margin at different production levels LO P$2$

The company sells its product for $$140$ per unit. Compute contribution margin using varlable costing assuming the company $($d$)$

produces and sells $3,000$ units and $(b)$ produces $3,600$ units and sells $3,000$ units.