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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.
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