Assume the following information for a company that produced 10,000 units and sold 8,000 units during its first year of operations and produced 8,000 units and sold 10,000 units during its second year of operations: Per Unit Per Year Selling price $ 200 Direct materials $ 75 Direct labor $ 50 Variable manufacturing overhead $ 10 Sales commission $ 8 Fixed selling and administrative expense $ 110,000 Fixed manufacturing overhead $ 300,000 Using variable costing, what is the company’s contribution margin for the second year of operations? Multiple Choice $380,000 $480,000 $570,000 $210,000

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Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.