Ramort Company reports the following cost data for its single product. The company regularly sells 20,000 units of its product at a price of $60 per unit.
Direct materials: $10 per unit
Direct labor: $12 per unit
Overhead costs for the year:
Variable overhead: $3 per unit
Fixed overhead per year: $40,000
Selling and administrative costs for the year:
Variable: $2 per unit
Fixed: $65,200
Normal production level (in units): 20,000 units
Compute contribution margin under variable costing.