Absorption Cost Per Unit: $612

Variable Cost Per Unit: $354

Price Per Unit: $765

Absorption Costing Income Statement Operating Income: $930,000

Contribution Margin Income Statement Operating Income: $930,000

INSTRUCTIONS YOU ARE TO WORK ON THIS IN YOUR ASSIGNED GROUPS ALL WORK MUST BE DONE ON THE EXCEL SPREADSHEET, "Answer Entry". THE FINAL PROJECT IS DUE ON FRIDAY, NOVEMBER 2ND. ONLY ONE MEMBER OF THE GROUP WILL BE REQUIRED TO SEND THIS IN. SHOW ALL WORK FOR EACH QUESTION. The Joe Echo Company (JEC) is a start-up company and just launched the design for a new product for sound systems. The product will be sold starting in January and JEC expects to be able to produce and sell 10,000 of these sytems for the month. The costs per system have been determined as follows: Direct Materials Direct Labor Variable manufacturing overhead 225 86 43 Total fixed manufacturing overhead 2,580,000 Selling and administrative costs have also been estimated for the year as follows: Variable selling & administrative costs Fixed selling & administrative costs 25 per unit 350,000