Homework Answers
Answer -
Calculation of the company's contribution margin
| Particulars | Explanation | Amount ($) | |
| I. | Sales | 9000 units * $200 | 1800000 |
| II. | Direct materials | 9000 units * $65 | 585000 |
| III. | Direct labor | 9000 units * $50 | 450000 |
| IV. | Variable manufacturing overhead | 9000 units * $8 | 72000 |
| V. | Sales commission | 9000 units * $8 | 72000 |
| Contribution margin | I - (II + III + IV + V) | 621000 |
Hence, Option - (C) is Correct.
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