Managerial Accounting (15th Edition)

Published by McGraw-Hill Education
ISBN 10: 007802563X
ISBN 13: 978-0-07802-563-1

Chapter 6 - Variable Costing and Segment Reporting: Tools for Management - The Foundational 15 - Required - Page 262: 3

Answer

$1.260.000

Work Step by Step

Variable cost of goods sold: 35,000 units * 40 per unit = \$1,400,000 Variable selling and administrative: 35,000 units * 4 per unit = $140,000 The company’s total contribution margin under variable costing: 2.800.000 - 1.400.000 - 140.000 = 1.260.000
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