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Question - Consider the following information for Richardson Company for the prior year:
- The company produced 2,450 units and sold 2,475 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
Fixed administrative costs
1
Required - What the contribution margin earned by Richardson for the prior year?
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