1. Duringthefirstyearofoperations, 9,000 units were manufacturedand 6,750 unitsweresold.OnMarch31,CarterCompanypreparedthe followingincome statement based on the variable costing concept:

CarterCompany

VariableCostingIncomeStatementFor Year Ended March 31, 2018

Sales		$297,000
Variablecostofgoodssold:
Variablecostof goodsmanufactured	$288,000
Lessendinginventoiy	72,000
Variablecostofgoodssold		216,000
Manufacturingmargin		$81,000
Variablesellingandadministrativeexpenses		40,500
Contributionmargin		$40,500
Fixed costs:
Fixedmanufacturingcosts	$18,000
Fixedsellingandadministrativeexpenses	12,800	30,800
Operatingincome		$9,700

Required:

1. Whatistheinventorycostperunitbasedonthevariablecostingconcept?
2. Whatistheinventorycost perunitbasedontheabsorptioncostingconcept?
3. Whatisthesellingpriceperunit?
4. Whatisthecontributionmarginperunit?
5. Prepareanabsorptioncostingincome statement.