Amman Company gathered the following information regarding its only product (6 Points)

Direct materials used$9,000

Direct labor17,000

Variable factory overhead13,000

Fixed factory overhead8,000

Variable selling and administrative expenses22,000

Fixed selling and administrative expenses11,000

Units produced and sold10,000

Selling price per unit$20

Required:

a.Compute the unit manufacturing cost of the product under the absorption approach.

b.Compute the unit manufacturing cost of the product under the contribution approach.

c.Compute the effect on net income of accepting a special order for 500 units at $10 per unit assuming excess capacity.