Comerowski Industries Inc Under Variable Costing,what Is the Total Contribution Margin?
A) $10,500

Multiple Choice

Comerowski Industries Inc.reported the following information about the production and sale of its only product during the first month of operations:
$$\begin{array} { l l } \text {Selling price per unit }&\$100.00\\\text {Sales }&\$100,000\\\text { Direct materials used}&\$ 37,000\\\text {Direct labor }&\$36,000 \\\text {Variable factory overhead}&\$25,000 \\\text {Fixed factory overhead }&\$20,000 \\\text {Variable selling and administrative expenses }&\$2,000 \\\text {Fixed selling and administrative expenses }&\$ 7,500\\\text {Ending inventory, Direct Materials }& 0\\\text {Ending inventory, Work-in-process }& 0\\\text {Ending inventory, Finished Goods }&1,200 \text { units } \\\end{array}$$
Under variable costing,what is the total contribution margin?

A) $10,500
B) $31,500
C) $49,500
D) $53,000