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Gorlami S.p.A. produces automotive accessories that it sells for 110 each. The 2021 data are the following: Units produced 1,560 Units sold 1,400 Variable materials

Gorlami S.p.A. produces automotive accessories that it sells for €110 each. The 2021 data are the following: 

Units produced 1,560 

Units sold 1,400 

Variable materials per unit €34 

Variable labor per unit €18 

Sales commission cost per unit €7 

Total fixed manufacturing overhead €49,920 

Total fixed selling and administrative costs €1,550

Required: 

a) Compute the product cost per unit under absorption costing and under variable costing.
b) Calculate the contribution margin ratio.

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