Waldo Company, which produces only one product, provides its most current month’s data as follows: | Selling price per unit | $ 80 | | Variable costs per unit: | | | Direct materials | 21 | | Direct labor | 10 | | Variable manufacturing overhead | 3 | | Variable selling and administrative | 6 | | Fixed costs: | | | Manufacturing overhead | $76,000 | | Selling and administrative | 58,000 | | Units: | | | Beginning inventory | 0 | | Month’s production | 5,000 | | Number sold | 4,500 | | Ending inventory | 500 |
Based upon the above information, what is the total contribution margin for the month under the variable costing approach?
A. $207,000B. $ 46,000 C. $226,000 D. $180,000 |
