Riverton Corp., which began business at the start of the current year, had the following data: Planned

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Question:

Riverton Corp., which began business at the start of the current year, had the following data:

Planned and actual production: 40,000 units
Sales: 36,000 units at $17 per unit
Production costs:
Variable: $3 per unit
Fixed: $275,000
Selling and administrative costs:
Variable: $2 per unit
Fixed: $37,900

Calculate the contribution margin that the company would disclose on a variable-costing income statement.