(Variable costing income statement) Tasty Beverages began business in 2010 selling bottles of a thirst quenching drink. Production for the first year was 104,000 bottles, and sales were 98,000 bottles. The selling price per bottle was $3.10. Costs incurred during the year were as follows:
|
Ingredients used |
$ 56,000 |
|
Direct labor |
26,000 |
|
Variable overhead |
48,000 |
|
Fixed overhead |
5,200 |
|
Variable selling expenses |
10,000 |
|
Fixed selling and administrative expenses |
28,000 |
|
Total actual cost |
$173,200 |
For 2010:
a. What was the production cost per bottle under variable costing?
b. What was variable cost of goods sold?
c. What was the contribution margin per bottle?
d. What was the contribution margin ratio?