Answer the following question using the information below:
Jason Novelty Company produces a specialty item.Management has provided the following information:

What is the total throughput contribution?
A)$3,432,000
B)$3,360,000
C)$4,620,000
D)$2,520,000

Question

Answer the following question using the information below:
Jason Novelty Company produces a specialty item.Management has provided the following information:

What is the total throughput contribution?
A)$3,432,000 
B)$3,360,000 
C)$4,620,000 
D)$2,520,000

Quizplus · Accepted Answer

Selling price per unit is $41 and the direct material costs is $8.Under throughput costing,contribution is calculated by deducting direct materials cost from the sale amount,the throughput contribution,in this case,is $33.Total throughput contribution for 140,000 units sold is [140,000 × $33 = $4,620,000]

Answer the Following Question Using the Information Below