(Variable costing income statement) High Flight Toys manufactures Frisbees. The following information is available for 2010, the company’s first year in business when it produced 300,000 units. Revenue of $480,000 was generated by the sale of 180,000 Frisbees.
|
Variable Cost |
Fixed Cost |
|
|
Production |
||
|
Direct material |
$150,000 |
|
|
Direct labor |
100,000 |
|
|
Overhead |
75,000 |
$112,500 |
|
Selling and administrative |
90,000 |
100,000 |
a. What is the variable production cost per unit?
b. What is the total contribution margin per unit?
c. Prepare a variable costing income statement.