Exercise C Dancing Diva produced 115,000 units this year and sold 110,000 units. The following costs were incurred:

Direct materials $517,500

Direct labor $1,840,000

Variable overhead $805,000

Fixed overhead $400,000

Sales Commissions $550,000

Fixed Selling Expenses $80,000

Fixed Administrative Expenses $300,000

Each unit sells for $40 each. Calculate the production cost per unit under the VARIABLE costing method and prepare a Contribution Margin Income Statement for the year ended December 31.