Fresh Air Products manufactures and sells a variety of camping products. Recently the company opened a new plant to manufacture a deluxe portable cooking unit. Cost and sales data for the first month of operations are shown below:

Fresh Air Products manufactures and sells a variety of camping products. Recently the company opened a new plant to manufacture a deluxe portable cooking unit. Cost and sales data for the rst month of operations are shown below: Beginning inventory 0 units Units produced 10,900 Units sold 9,700 Manufacturing costs Fixed overhead $130,800 Variable overhead $7 per unit Direct labour $9 per unit Direct material $29 per unit Selling and administrative costs Fixed $206,400 Variable $4 per unit sold The portable cooking unit sells for $112. Management is interested in the opening month's results and has asked for an income statement. V (a) Assuming the company uses variable costing: 1. Calculate the manufacturing cost per unit. Manufacturing cost $ 57 per unit 2. Prepare a variable-costing income statement for the first month of operation. Fresh Air Products Income Statement-Variable Costing For the first month of operations Sales 4} {- 4 Less : Variable costs Variable cost of goods sold 1|} m 4} 4} Contribution margin 4} Fixed costs A V . 4|- 45 4b 4b 4} +9