A company is preparing it cost budgets for the forthcoming financial year. Thr company produces a single product,which it is expecting to sell at $150 per unit. Based on annual sales and output of 2000 units, estimated costs are:
Direct material 41
Direct wages 38
Variable production overhead 37
Fixed production overhead 40
Variable selling overhead 10
Fixed administration overhead 50
If marginal costing is applied, what is the total contribution?
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