Ibadan Textiles Limited has the following data for October 2024: Sales ₦18,000,000; Variable cost of sales ₦10,800,000; Fixed production overhead absorbed ₦2,400,000; Over-absorption of fixed production overhead ₦360,000; Variable selling and distribution costs ₦900,000; Fixed selling overhead ₦600,000. What is the marginal costing contribution for October?

Marginal costing contribution = Sales – all variable costs = ₦18,000,000 – ₦10,800,000 – ₦900,000 = ₦6,300,000. Fixed production overhead absorbed and over-absorption adjustments are irrelevant to contribution calculation under marginal costing; only variable costs are deducted from sales revenue. Fixed selling overhead is also excluded from contribution computation.