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Ace, Inc. has the following cost data for Product X, and unit product cost using variable costing when production is 2,000 units, 2,500 units, and

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Ace, Inc. has the following cost data for Product X, and unit product cost using variable costing when production is 2,000 units, 2,500 units, and 5,000 units. (Click on the icon to view the data.) (Click on the icon to view the unit product cost data.) Product X sells for $162 per unit. Assume no beginning inventories. Calculate the contribution margin using variable costing when Ace: a. Produces and sells 2,000 units. b. Produces 2,500 units and sells 2,000 units. c. Produces 5,000 units and sells 2,000 units. Reference X Data Table SUU OT Direct materials Direct materials 2,000 units 2,500 units 5,000 units 44 $ 44 $ 44 52 52 52 Direct labor Direct labor 44 52 11 20,000 per unit per unit per unit per year 11 Variable manufacturing overhead Variable manufacturing overhead Fixed manufacturing overhead $ 107 $ 107 $ 107 Total unit product cost Print Done Print Done Begin by selecting the labels and computing the contribution margin for scenario a. and then compute the contribution margin for scenario b. and c. Variable costing b. Cost of Goods Sold Direct Labor Direct Materials Fixed Manufacturing Overhead Net Sales Revenue Variable Manufacturing Overhead Total Variable Costs Begin by selecting the labels and computing the contribution margin for scenario a. and then compute the contribution margin for scenario b. and c. Variable costing a . b. c. Contribution Margin

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