Buttons Company produces three products: LMC, DMC, and KPC. For the coming year, they expect to produce 160,000 units. Of these, 65,000 will be LMC; 40,000 will be DMC; and 55,000 will be KPC. The following information was provided for the coming year:

1st LMC

2nd DMC

3rd KPC

Price

$550

$860

$625

Unit direct materials

250

405

300

Unit direct labor

180

210

205

Unit variable overhead

60

72

55

Unit variable selling expense

45

60

58

Total direct fixed overhead

240,000

425,000

400,000

Common fixed overhead is $984,000 and fixed selling and administrative expenses for Mario Co. is $881,000 per year.

Required:

A. Calculate the unit variable cost under variable costing.

B. Calculate the unit variable product cost.

C. A segmented variable-costing income statement for next year.

D. Should Buttons Company keep all product lines?