(Variable costing income statement) Gatorsip Beverages began business in 2006 selling bottles of a thirst-quenching drink. Production for the first year was 52,000 bottles of Gatorsip, and sales were 49,000 bottles. The selling price per bottle was $3-10. Costs incurred during the year were as follows:

a. What was the production cost per bottle under variable costing?

b. What was variable cost of goods sold for 2006?

c. What was the contribution margin per bottle?

d. What was the contribution margin ratio?LO.1 

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Ingredients used Direct labor Variable overhead Fixed overhead Variable selling expenses Fixed selling and administrative expenses Total actual costs $28,000 13,000 24,000 2,600 5,000 14,000 $86,600