Henderson Manufacturing, which started operations in January 2024, reported the following data: Planned and actual production: 50,000 units Sales: 45,000 units at $20 per unit Production costs: • • Variable: $6 per unit Fixed: $320,000 Selling and administrative costs: Variable: $2 per unit • • Fixed: $45,000 Calculate the contribution margin that would appear on Henderson's variable-costing income statement. a) $425,000 b) $540,000 c) $495,000 d) $900,000 e) None of the above

Principles of Accounting Volume 2
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Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 5PB: Wellington, Inc., reports the following contribution margin income statement for the month of May....
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Henderson Manufacturing, which started operations in January 2024, reported the
following data: Planned and actual production: 50,000 units Sales: 45,000 units at $20 per
unit Production costs:
•
•
Variable: $6 per unit
Fixed: $320,000 Selling and administrative costs:
Variable: $2 per unit
•
•
Fixed: $45,000
Calculate the contribution margin that would appear on Henderson's variable-costing
income statement.
a) $425,000
b) $540,000
c) $495,000
d) $900,000
e) None of the above
Transcribed Image Text:Henderson Manufacturing, which started operations in January 2024, reported the following data: Planned and actual production: 50,000 units Sales: 45,000 units at $20 per unit Production costs: • • Variable: $6 per unit Fixed: $320,000 Selling and administrative costs: Variable: $2 per unit • • Fixed: $45,000 Calculate the contribution margin that would appear on Henderson's variable-costing income statement. a) $425,000 b) $540,000 c) $495,000 d) $900,000 e) None of the above
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