Hadley 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) $27,100
B) $59,400
C) $48,600
D) $79,200

Question

Hadley 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) $27,100 
B) $59,400 
C) $48,600 
D) $79,200

Quizplus · Accepted Answer

11ea7761_181f_c661_81a5_1552215ce9a6_TB2580_00 Unit CM = Selling price per unit - Variable expenses per unit
= $126 per unit - $93 per unit = $33 per unit
Contribution margin = Unit CM × Unit sales = $33 per unit × 1,800 units = $59,400

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