Answer the following question using the information below:
Jason Novelty Company produces a specialty item. Management has provided the following information:

What is the total throughput contribution?
A) $3,432,000
B) $3,360,000
C) $4,620,000
D) $2,520,000

Question

Answer the following question using the information below:
Jason Novelty Company produces a specialty item. Management has provided the following information:

What is the total throughput contribution?
A) $3,432,000 
B) $3,360,000 
C) $4,620,000 
D) $2,520,000

Quizplus · Accepted Answer

Selling price per unit is $41 and the direct material costs is $8. Under throughput costing, contribution is calculated by deducting direct materials cost from the sale amount, the throughput contribution, in this case, is $33. Total throughput contribution for 140,000 units sold is [140,000 × $33 = $4,620,000]

Answer the Following Question Using the Information Below