The Accounting Records for Grant Manufacturing Company Included the Following

Multiple Choice

The accounting records for Grant Manufacturing Company included the following cost information relating to its first year of operations: $\begin{array}{lrr} \text { Direct materials} &\$60,000\\ \text { Direct labor } &\$80,000\\ \text { Fixed manufacturing overhead} &\$100,000\\ \text {Variable manufacturing overhead } &\$20,000\\\end{array}$

Assume the company produced 10,000 units of inventory and sold 6,000 of these units during the year for $192,000.Under variable costing,what is the contribution margin for the year? (Ignore selling and administrative expenses.)

A) $100,000.
B) $40,000.
C) $32,000.
D) None of these answers are correct.