Glover Headgear produces specialty logo baseball caps for a variety of customers. Selected cost data for Glover follows: direct materials cost $17,000; depreciation on factory equipment, $21,000; direct labor, $16,000; factory lease, $24,000. If Glover sells 6,100 caps at an average price of $12 for each cap, what is the company's contribution margin in total dollars?
What will be an ideal response?
| Sales (6,100 caps @ $12)…………… | ? | $73,200 |
| Less Variable Costs: | ? | ? |
| Direct materials…………………… | $17,000 | ? |
| Direct labor……………………… | 16,000 | 33,000 |
| Contribution margin………………… | ? | $40,200 |
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