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Requlred Information

Use the following information for the Quick Study below. $($Algo$)$

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

Ramort Company reports the following for its single product. Ramort produced and sold $21,400$ units this year.

Direct materials

Direct labor

Variable overhead

Fixed overhead

Variable selling and administrative expenses

Fixed selling and administrative expenses

Sales price

$$17$ per unit

$$19$ per unit

$$10$ per unit

$$42,890$ per year

$$3$ per unit

$$66,60$ per year

$$81$ per unit

QS $19-12($Algo$)$ Varlable costing and overproduction LO C$1$

Ramort doubles its production from $21,400$ to $42,800$ units while sales remain at the current $21,400$ unit level.

$($a$)$ Compute contribution margin when production is $42,800$ units under variable costing.

$($b$)$ What is the change in contribution margin by increasing production from $21,400$ units to $42,800$ units under variable costing?

Complete this question by entering your answers in the tabs below.

Compute contribution margin when production is $42,800$ units under variable costing.

$\backslash$table$[[$RAMORT COMPANY,$],[,$Contribution Margin $($Variable Costing$),],[,,],[$Variable expenses,,$],[,,],[,,],[,,],[$Contribution margin,,$]]$