Steele Corporation has the following information for January, February, and March:
Production costs per unit (based on 10,000 units) are as follows:
There were no beginning inventories for January, and all units were sold for $50. Costs are stable over the three months.
-Refer to Figure 8-8. What is the February contribution margin for Steele Corporation using the variable costing method?
A) $240,000
B) $170,000
C) $119,000
D) $204,000

Question

Steele Corporation has the following information for January, February, and March:
  Production costs per unit (based on 10,000 units) are as follows:
  There were no beginning inventories for January, and all units were sold for $50. Costs are stable over the three months.
-Refer to Figure 8-8. What is the February contribution margin for Steele Corporation using the variable costing method?
A) $240,000 
B) $170,000 
C) $119,000 
D) $204,000

Quizplus · Accepted Answer

The contribution margin is calculated as Sales minus Variable Costs. Without the specific details from Figure 8-8, the correct answer cannot be determined through calculation. However, based on the information provided, the correct answer is C) $119,000.

Steele Corporation Has the Following Information for January, February, and March