Dartmount Corporation Has Provided Its Contribution Format Income Statement for June

question 116

Multiple Choice

Dartmount Corporation has provided its contribution format income statement for June. The company produces and sells a single product.
$$\begin{array} { l r } \text { Sales (2,900 units) } & \$ 269,700 \\\text { Variable costs } & 107,300 \\\text { Contribution margin } & 162,400 \\\text { Fixed costs } & 137,100 \\\text { Operating profit } & \$ 25,300\end{array}$$
If the company sells 3,100 units, its total contribution margin should be closest to:

• A) $27,045.
• B) $181,000.
• C) $162,400.
• D) $173,600.

Determine standard costs for manufacturing materials and overheads.

Understand the two-variance approach to analyzing overhead variances and its application.

Analyze management performance using variance reports and identify corrective actions.

Differentiate between standards and budgets in manufacturing contexts.

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