This Question: 3 pts 9 of 30 (8 complete) Hyper Color Company manufactures widge

Question

This Question: 3 pts 9 of 30 (8 complete) Hyper Color Company manufactures widgets. The following data is related to sales and production of the widgets for last year Selling price per unit Variable manufacturing costs per unit Variable selling and administrative expenses per unit Fixed manufacturing overhead (in total) Fixed selling and administrative expenses (in total) Units produced during the year Units sold during year $160 $62 $5 $33,000 $8,000 1,800 900 Using variable costing, what is the contribution margin for last year? O A. $204,300 O B. $55,800 O C. $83,700 O D. $144,000 Click to select your answer

Explanation / Answer

Contribution = sale price - variable cost

=$160-($62+$5)

=$93

Contribution margin= contribution*units sold

=$93*900units

=$83,700

Therefore answer is option (C)

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