Frankenreiter Inc. Variable Costing Income Statement For the Year Ended December 31, 20Y1 Sales $884,000 Variable cost of goods sold: Variable cost of goods manufactured $500,000 Inventory, December 31 (75,000) Total variable cost of goods sold 425,000 Manufacturing margin $459,000 Total variable selling and administrative expenses 105,400 Contribution margin $353,600 Fixed costs: Fixed manufacturing costs $228,000 1 Fixed selling and administrative expenses 71,400 Total fixed costs 299,400 Income from operations $54,200 Determine the unit cost of goods manufactured, based on (a) the variable costing concept and (b) the absorption costing concept. Variable costing Absorption costing Cost of Goods Manufactured, using Variable Conting and Absorption Costing On December 31, the end of the first year of operations, Frankenreiter Inc., manufactured 4,000 units and sold 3.400 units. The following income statement was prepared, based on the variable costing concept: Frankenreiter Inc. Variable Costing Income Statement For the Year Ended December 31, 2011 Sales $884,000 Variable cost of goods sold: Variable cost of goods manufactured $500,000 Inventory, December 31 (75,000) Total variable cost of goods sold 425,000 Manufacturing margin $459.000 Total variable selling and administrative expenses 105,400 Contribution margin $353,600 Fixed costs: Fixed manufacturing costs $228,000 Fixed selling and administrative expenses 71,400 Total fixed costs 299,400 Income from operations $54,200 Determine the unit cost of goods manufactured, based on (a) the variable costing concept and (b) the absorption costing concept