[The following information applies to the questions displayed below.] Red and White Company reported the following monthly data:Units produced 2,000unitsSales price$25per unitDirect materials$1per unitDirect labor$2per unitVariable overhead$3per unitFixed overhead$8,000in totalWhat is Red and White's contribution margin for this month if 980 units were sold?
A. $18,620
B. $24,500
C. $50,000
D. $21,560
E. $38,000
Answer: A
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