On October 31, the end of the first month of operations, Yankovich Inc. manufactured 75,000 units and sold 67,500 units. The following income statement was prepared, based on the variable costing concept:

Determine the unit cost of goods manufactured, based on (a) the variable costing concept and (b) the absorption costing concept.

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Yankovich Inc. Variable Costing Income Statement For the Month Ended October 31 Sales........ Variable cost of goods sold: Variable cost of goods manufactured .. Inventory, October 31........ Total variable cost of goods sold.. Manufacturing margin......... Total variable selling and administrative expenses. Contribution margin...... Fixed costs: Fixed manufacturing costs .... Fixed selling and administrative expenses... Total fixed costs........ Operating income.... $9,000,000 (900,000) $ 600,000 140,000 $14,600,000 (8,100,000) $ 6,500,000 (1,460,000) $ 5,040,000 (740,000) $ 4,300,000