Reference no: EM132735097

Riverton Corp., which began business at the start of the current year, had the following data:

Sales: 34,000 units at $16 per unit

Production costs:

Variable: $3 per unit

Fixed: $310,000

Selling and administrative costs:

Variable: $2 per unit

Fixed: $41,100

Problem 1: The contribution margin that the company would disclose on a variable-costing income statement is:

Multiple Choice

Option 1: $109,500.

Option 2: $132,000.

Option 3: $178,500.

Option 4: $374,000.

Option 5: None of the answers is correct.