Princeton Fabrication, Inc., produced and sold 800 units of the company’s only product in March. ’
You have collected the following information from the accounting records:

Required

a. Compute:
1. Variable manufacturing cost per unit.
2. Full cost per unit.
3. Variable cost per unit.
4. Full absorption cost per unit.
5. Prime cost per unit.
6. Conversion cost per unit.
7. Profit margin per unit.
8. Contribution margin per unit.

b. If the number of units increases from 800 to 1,000, which is within the relevant range, will the fixed manufacturing cost per unit increase, decrease, or remain the same? Explain.

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Sales price (per unit). Manufacturing costs: Fixed overhead (for the month) Direct labor (per unit). $ 128 9,600 10 Direct materials (per unit) 32 Variable overhead (per unit) 20 Marketing and administrative costs: Fixed costs (for the month) 12,800 Variable costs (per unit) 4