A manufacturing company that produces a single product has provided the following data concerning its most recent month of operation. The total contribution margin for the month under variable costing is

The contribution margin for the month is $120,000

Explanation:

The computation of the contribution margin for the month is as follows;

But before that we do the following calculations

Total variable cost per unit is

Direct materials $13

Direct labor $35

Variable manufacturing overhead $1

Variable selling and administrative $10

Total is $59

And, the selling price per unit is $89

So, the contribution margin per unit is

= Selling price per unit - variable cost per unit

= $89 - $59

= $30

And, the number of unit sold is 4,000

So, the contribution margin for the month is

= 4,000 × $30

= $120,000

Hence, the  contribution margin for the month is $120,000

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