Accurate Metal Company sold 34,000 units of it's product at a price of $290 per unit. Total variable cost per unit is $171, consisting of $157 in variable production cost and $8 in variable selling and administrative cost. Compute the manufacturing margin for the company under variable costing.A. $9,860,000B. $5,814,000C. $5,542,000D. $4,522,000

Respuesta :

Answer:

option (D) $4,522,000

Explanation:

Data provided in the question:

Number of units sold = 34,000

Price per unit = $290

Total variable cost per unit = $171

Variable production cost = $157

Variable selling and administrative cost = $8

Now,

Manufacturing margin per unit = Selling price - Variable production cost

= $290 - $157

= $133

Therefore,

Total manufacturing margin

= Manufacturing margin per unit × Number of units sold

= $133 × 34,000

= $4,522,000

Hence,

The answer is option (D) $4,522,000

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