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

11ea7761_181c_b90d_81a5_193afc509102_TB2580_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