Answer the Following Questions Using the Information Below:
Capity Tea

question 10

Multiple Choice

Answer the following questions using the information below:
Capity Tea Products has an exclusive contract with British Distributors. Calamine and Capity are two brands of teas that are imported and sold to retail outlets. The following information is provided for the month of March:
$\begin{array}{lrrrr} &\text { Actual }&&\text { Budget }\\& \text { Calamine } & \text { Capity } & \text { Calamine } & \text { Capity } \\\text { Sales in pounds } & 3,740 \mathrm{lbs} . & 3,960 \mathrm{lbs} . & 4,400 \mathrm{lbs} . & 3,300 \mathrm{lbs} \\\text { Price per pound } & \$ 2.80 & \$ 2.80 & \$ 2.00 & \$ 3.00 \\\text { Variable cost per pound } & 1.00 & 2.00 & 1.00 & 1.50 \\\text { Contribution margin } & \$ 1.80 & \$ 0.80 & \$ 1.00 & \$ 1.50\end{array}$ Budgeted and actual fixed corporate-sustaining costs are $1,850 and $2,300, respectively.
-What is the actual contribution margin for the month?

• A) $9,680
• B) $9,350
• C) $10,560
• D) $9,900