Aaron Corporation, 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 variable costing is:
A) $27,000
B) $63,000
C) $8,600
D) $75,000

Question

Aaron Corporation, 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 variable costing is:
A) $27,000 
B) $63,000 
C) $8,600 
D) $75,000

Quizplus · Accepted Answer

11eacbfc_c6bb_ba20_8ffe_8138f48dce3b_TB7552_00 Unit CM = Selling price per unit − Variable expenses per unit
= $90 per unit − ($65 per unit + $4 per unit) = $90 per unit − $69 per unit = $21 per unit
Contribution margin = Unit CM × Unit sales = $21 per unit × 3,000 units = $63,000

Aaron Corporation, Which Has Only One Product, Has Provided the Following