Hadlock Company, which has only one product, has provided the following data concerning its most recent month of operations:
-The total contribution margin for the month under the variable costing approach is:
A)$192,000
B)$128,000
C)$72,800
D)$140,800

Question

Hadlock Company, which has only one product, has provided the following data concerning its most recent month of operations: 
-The total contribution margin for the month under the variable costing approach is:
A)$192,000 
B)$128,000 
C)$72,800 
D)$140,800

Quizplus · Accepted Answer

The contribution margin under variable costing is calculated as follows:
Total revenue - total variable expenses = contribution margin
$320,000 - ($128,000 + $64,000 + $16,000) = $140,800 
Therefore, the correct answer is D.

Hadlock Company, Which Has Only One Product, Has Provided the Following