Ramort Company reports the following cost data for its singl

Ramort Company reports the following cost data for its single product. The company regularly sells 22,000 units of its product at a price of $64.00 per unit. Direct materials Direct labor Overheadcosts for the year $ 10.4e per unit $ 12.40 per unit Variable overhead Fixed overhead per year $ 3.40 per unit $ 57,608 Selling and adminstrative costs for the year Variable Fixed $ 2.40 per unit ?65,600 Normal production level (in units) 22,000 units Compute contribution margin under variable costing RAMORT COMPANY Contribution margin Sales 64 ess: Variable expenses 2 Contribution margin

Solution

Sales             14,08,000 Less Variable Expenses    Variable Selling and administative expenses                        52,800    Variable Manufactering Expenses                        74,800    Other Variable expenses                     5,01,600 Total Variable expenses                6,29,200 Contribution Margin                7,78,800