Chapter 7 Variable Costing for Management Analysis 331 BE 7-4 Analyzing income under absorption and variable costing Obj. 2 Variable manufacturing costs are $126 per unit, and fixed manufacturing costs are $157,500. Sales are estimated to be 10,000 units. a. How much would absorption costing operating income differ between a plan to produce 10,000 units and a plan to produce 15,000 units? b. How much would variable costing operating income differ between the two production plans? Obj. 4 BE 7-5 Contribution margin by segment The following information is for La Planche Industries Inc.: East West 45,000 60,000 38,000 50,000 Sales volume (units): Product XX Product YY. Sales price: Product XX. ProductYY Variable cost per unit: Product XX. ProductYY $700 $728 $660 $720 $336 $360 $336 $360 Determine the contribution margin for (a) Product YY and (b) West Region