Colorado Business Tools manufactures calculators. Costs incurred in making $9,290$ calculators in February included $$29,800$ of fixed manufacturing overhead. The total absorption cost per calculator was $$10\mathrm{.}50.$

Required:

a$.$ Calculate the variable cost per calculator.

b$.$ The ending inventory of calculators was $770$ units higher at the end of the month than at the beginning of the month. By how much and in what direction $($higher or lower$)$ would operating income for the month of February be different under variable costing than under absorption costing?

c$.$ Express the calculator cost in a cost formula.

Complete this question by entering your answers in the tabs below.

Required A

Calculate the variable cost per calculator.

Note: Do not round intermediate calculations. Round your answer to $2$ decimal places.

Variable cost per calculator

Required A

Required B $>$