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Nilsan Company experienced the following costs in 2010: Direct materials $2.25 / unit Direct labor $4.10 / unit Variable manufacturing overhead $0.75 / unit Variable

Nilsan Company experienced the following costs in 2010:

Direct materials $2.25 / unit

Direct labor $4.10 / unit

Variable manufacturing overhead $0.75 / unit

Variable selling $3.00 / unit

Fixed manufacturing overhead $60,000

Fixed selling $35,000

Fixed administrative $20,000

During 2010 the company manufactured 120,000 units and sold 145,000 units. Assume the same unit costs in all years. Total variable costs on the companys 2010 contribution income statement will be:

$1,102,000
$1,537,000
$1,029,500
$1,464,500

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