(Variable costing income statement) AEC manufactures automotive distributor caps. The following information is available for 2006, the company’s first year in business when it produced 75,000 caps. Revenue of $360,000 was generated by the sale of 45,000 caps.

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.LO.1 

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Variable Costs Fixed Costs Production Direct material Direct labor $150,000 225,000 Overhead 37,500 $ 56,250 Selling and administrative 90,000 150,000