Reference no: EM132879867
Question - Consider the following information for Richardson Company for the prior year:
- The company produced 2,450 units and sold 2,375 units, both as budgeted.
- There were no beginning or ending work-in-process inventories and no beginning finished goods inventory.
- Budgeted and actual fixed costs were equal, all variable manufacturing costs were affected by production volume only, and all variable selling costs were affected by sales volume only.
- Budgeted per unit revenues and costs were as follows:
Per unit
Sales price $75
Direct materials 9
Direct labor 24
Other variable manufacturing costs 11
Fixed selling costs 6
Variable selling costs 16
Fixed manufacturing costs 6
Fixed administrative costs 1
Required - What the contribution margin earned by Richardson for the prior year?