Colbert Company gathered the following information regarding its only product: Direct materials used $9,000 Direct labor 17,000 Variable factory overhead 13,000 Fixed factory overhead 8,000 Variable selling and administrative expenses 22,000 Fixed selling and administrative expenses 11,000

Units produced and sold 10,000 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.