Roby Manufacturers manufactures household lamps, and sells them at $85 per unit. In the first...
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Roby Manufacturers manufactures household lamps, and sells them at $85 per unit. In the first month of operation, 2,350 units were produced and 1,980 units were sold. Actual fixed costs are the same as the amount budgeted for the month. Other information for the month includes:
Variable manufacturing costs $20.89 per unit
Variable marketing costs $4.30 per unit
Fixed manufacturing costs $14.60 per unit
Administrative expenses, all fixed $17.78 per unit
Ending inventories:
Direct materials -0-
WIP -0-
Finished goods 370 units
What is the contribution margin of the business in the first month of operation using the variable costing method?
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