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Kosco Corporation produces a single product. The company's absorption costing income statement for March follows: Kosco Corporation Income Statement For the Month Ended March 31
Kosco Corporation produces a single product. The company's absorption costing income statement for March follows:
Kosco Corporation Income Statement For the Month Ended March 31 | ||
Sales (2,400 units) | $48,000 | |
Cost of goods sold | 24,000 | |
Gross margin | 24,000 | |
Selling and administrative expenses: | ||
Fixed | $7,200 | |
Variable | 9,600 | 16,800 |
Net operating income | $7,200 |
During March, the company's variable production costs were $8 per unit and its fixed manufacturing overhead totaled $5,000. The contribution margin per unit during March was:
$8 per unit
$12 per unit
$10 per unit
$3 per unit
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