(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.