Swan Textiles Inc What Is the Contribution Margin Using Variable Costing?
A)$135,000
B)$124,200

Multiple Choice

Swan Textiles Inc.produces and sells a decorative pillow for $98.00 per unit.In the first month of operation,2,300 units were produced and 1,800 units were sold.Actual fixed costs are the same as the amount budgeted for the month.Other information for the month includes:
$\begin{array}{ll}\text { Variable manufacturing costs } & \$ 23.00 \text { per unit } \\\text { Variable marketing costs } & \$ 6.00 \text { per unit } \\\text { Fixed manufacturing costs } & \$ 15 \text { per unit } \\\text { Administrative expenses, all fixed } & \$ 21.00 \text { per unit } \\\text { Ending inventories: } & \\\text { Direct materials } & -0- \\\text { WIP } & -0- \\\text { Finished goods } &500 \text { units }\end{array}$
What is the contribution margin using variable costing?

A) $135,000
B) $124,200
C) $165,600
D) $123,500