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1.) A firm expects to sell 25,700 units of its product at $11.70 per unit and to incur variable costs per unit of $6.70. Total
1.) A firm expects to sell 25,700 units of its product at $11.70 per unit and to incur variable costs per unit of $6.70. Total fixed costs are $77,000. The total contribution margin is:
2.) A manufacturer reports the following information below for its first three years in operation.
| Year 1 | Year 2 | Year 3 | ||||||
| Income under variable costing | $ | 90,000 | $ | 123,000 | $ | 129,000 | ||
| Beginning inventory (units) | 0 | 940 | 570 | |||||
| Ending inventory (units) | 940 | 570 | 0 | |||||
| Fixed manufacturing overhead per unit | $ | 15.00 | $ | 15.00 | $ | 15.00 | ||
Income for year 2 using absorption costing is:
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