Callaway Corp., which began business at the start of the current year, had the following data:Planned and actual production: 40,000 unitsSales: 38,000 units at $15 per unitProduction costs:Variable: $5 per unitFixed: $260,000Selling and administrative costs:Variable: $1 per unitFixed: $32,000The contribution margin that the company would disclose on a variable-costing income statement is:
A. $0.
B. $342,000.
C. $166,500.
D. $120,000.
E. None of the answers is correct.
Answer: B
Business
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