What is the amount of the ending merchandise inventory ?

Kenneth Manufacturing produces two models of its kitchen tables, the Classic and the Royal. The Classic model requires 5,000 direct labor hours, and the Royal model requires 25,000 direct labor hours. The company produces 4,000 units of the Classic model and 1,500 units of the Royal model each year. The company produces the Classic model in batch sizes of 200, while it produces the Royal model in batch sizes of 150. The company expects to incur $180,000 of total setup costs this year. How much of the setup costs are allocated to the Classic model using ABC costing? A. $80,000 B. $100,000 C. $160,000 D. $120,000

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Please explain how to solve this financial accounting question with valid financial principles.

Compute the contribution margin.

I am trying to find the accurate solution to this general accounting problem with the correct explanation.

Please provide the correct solution to this financial accounting question using valid principles.

Provide correct solution and accounting

Walnut Corporation produces a product that sells for $78.00. Fixed costs are $325,000, and variable costs are $32.00 per unit. Walnut can buy a new production machine that will increase fixed costs by $18,500 per year but will decrease variable costs by $5.50 per unit. Compute the contribution margin per unit if the machine is purchased. a) $46.00 b) $48.50 c) $51.50 d) $52.00 e) $54.00