8. Franklin Company, which has only one product, has provided the following data concerning its first month of operations:

Selling price $200

Units produced 1,000

Units sold 900

Variable product costs per unit $80

Variable selling and administrative costs per unit $20

Fixed manufacturing costs $36,000

Fixed selling and administrative costs $9,000

Required:

a. What is the value of ending inventory using the variable costing method?

b. What is the value of ending inventory using the absorption costing method?

c. What is the contribution margin per unit?

d. Prepare a variable costing income statement for the month using variable costing (assume no taxes).

e. What is the gross profit margin per unit?

f. Prepare an income statement for the month using absorption costing (assume no taxes).