Aaron Corporation, which has only one product, has provided the following data concerning its most recent month of operations:
Selling price $ 91
Units in beginning inventory 0
Units produced 3,800
Units sold 3,230
Units in ending inventory 570
Variable costs per unit:
Direct materials $ 22
Direct labor $ 32
Variable manufacturing overhead $ 5
Variable selling and administrative expense $ 3
Fixed costs:
Fixed manufacturing overhead $ 60,900
Fixed selling and administrative expense $ 2,400
Required:
1. The total contribution margin for the month under variable costing is .
Multiple Choice:
O $32,770
O $103,360
O $30,370
O $93,670

The total contribution margin for the month under variable costing is $103,360

Explanation:

Variable Costing Considers only variable manufacturing costs in the calculation of product costs. Fixed Manufacturing Costs are regarded as period cost using this method.

Sales ( $ 91 × 3,230 )                                                                        293,930

Less Cost of Goods Sold

Opening Stock                                                                    0

Add Cost of Goods Manufactured

Direct materials ( $ 22 × 3,800)                                    83,600

Direct labor ( $ 32 × 3,800)                                          121,600

Variable manufacturing overhead ( $ 5 × 3,800)         19,000

Less Closing Stock ( $ 22+$ 32+ $ 5) × 570              ( 33,630)    (190,570)

Contribution                                                                                       103,360

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.

answer founder's agreement;