Hadley Corporation, which has only one product, has provided the following data concerning its most recent month of operations

Selling price

Units in beginning inventory O

Units produced

Units sold

$ 126

1,900

1,800

Units in ending inventory 100

Variable costs per unit:

Direct materials

Direct labor

Variable manufacturing overhead

$ 49

$ 28

$5

Variable selling and administrative expense $ 11

Fixed costs:

Fixed manufacturing overhead

$ 32,300

Fixed selling and administrative expense $ 23,400

The total contribution margin for the month under variable costing is:

O $27,100

O $59,400

0 $48.600

O $79,200

To determine the total contribution margin under variable costing, let's go through the following steps:

1. **Calculate the Total Sales Revenue:**
   - Selling price per unit: $126
   - Units sold: 1,800
   - Total Sales Revenue = Selling Price per Unit × Units Sold  
     \[ 126 \times 1,800 = 226,800 \]

2. **Calculate the Total Variable Cost per Unit:**
   - Direct materials: $49
   - Direct labor: $28
   - Variable manufacturing overhead: $5
   - Variable selling and administrative expense: $11
   - Total Variable Cost per Unit = Direct Materials + Direct Labor + Variable Manufacturing Overhead + Variable Selling and Administrative Expense  
     \[ 49 + 28 + 5 + 11 = 93 \]

3. **Calculate the Total Variable Costs for Units Sold:**
   - Total Variable Cost per Unit: $93
   - Units sold: 1,800
   - Total Variable Costs = Total Variable Cost per Unit × Units Sold  
     \[ 93 \times 1,800 = 167,400 \]

4. **Calculate the Contribution Margin:**
   - Contribution Margin = Total Sales Revenue - Total Variable Costs  
     \[ 226,800 - 167,400 = 59,400 \]

### Answer:
The total contribution margin for the month under variable costing is:
\[
\textbf{59,400}
\]

So, the correct answer is:
- **$59,400**

Would you like further clarification on any part of this calculation? 

---

### Related Questions:
1. How would the contribution margin change if the selling price per unit increased by $10?
2. What impact would a decrease in fixed manufacturing overhead have on the total cost structure?
3. How does variable costing differ from absorption costing in this scenario?
4. How would the contribution margin be affected if variable costs per unit were reduced by $5?
5. What would be the new contribution margin if the units sold increased to 2,000?

### Tip:
Remember, in variable costing, fixed manufacturing overhead is treated as a period cost and is not included in the product cost, which affects the contribution margin directly.

Hadley Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $126, Units in beginning inventory 0, Units produced 1,900, Units sold 1,800, Units in ending inventory 100. Variable costs per unit: Direct materials $49, Direct labor $28, Variable manufacturing overhead $5, Variable selling and administrative expense $11. Fixed costs: Fixed manufacturing overhead $32,300, Fixed selling and administrative expense $23,400. The total contribution margin for the month under variable costing is: O $27,100, O $59,400, O $48,600, O $79,200.

Explore how to calculate the total contribution margin for Hadley Corporation using variable costing with provided sales data. Key figures include a selling price of $126, units sold 1,800, and total variable costs of $93 per unit leading to a contribution margin of $59,400.

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