Carr Company produces a single product. During the past year, Carr manufactured 25,000 units and sold 20,000 units. Production costs for the year were as follows:

Fixed manufacturing overhead........ $250,000

Variable manufacturing overhead ....$210,000

Direct Labor..................................... $120,000

Direct Materials ................................$180,000

Sales totaled $850,000, variable selling expenses totaled $110,000, and fixed selling and administrative expenses totaled $170,000. There were no units in beginning inventory. Assume that direct labor is a variable cost.

(Do not round intermediate calculations.)

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Part 1) The contribution margin per unit would be:

a. $17.70

b. $22.10

c. $12.10

d. $16.60

Part 2) Under absorption costing, the ending inventory for the year would be valued at:

a. $213,500

b. $222,000

c. $179,500

d. $152,000

Part 3) Under variable costing, the net income for the year would be:

a. $28,000 higher than under absorption costing

b. $50,000 higher than under absorption costing

c. $28,000 lower than under absorption costing

d. $50,000 lower than under absorption costing