Refer to Cornerstone Exercise 18-3.

Required:

1. Calculate the cost of each unit using variable costing.

2. How many units remain in ending inventory? What is the cost of ending inventory using variable costing?

3. Prepare a variable-costing income statement for Baxter Products, Inc., for the month of October.
4. What if November production was 30,000 units, costs were stable, and sales were 31,000 units? What is the cost of ending inventory? What is operating income for November?LO1