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9.A manufacturing company that produces a single product has
provided the following data concerning its most recent month of
operations:
Selling price ................. P135
Units in beginning inventory .. 0
Units produced ................ 6,400
Units sold .................... 6,200
Units in ending inventory ..... 200
Variable costs per unit:
Direct materials .............. P49
Direct labor .................. P38
Variable manufacturing overhead P6
Variable selling and administrative P11
Fixed costs:
Fixed manufacturing overhead .. P108,800
Fixed selling and administrative P74,400
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M.S.M.C.
The total contribution margin for the month under the variable
costing approach is:
A) P155,000
B) P260,400
C) P192,200
D) P83,400
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