Pattison Products, Inc., began operations in October and manufactured 46,000 units during the month with the following unit costs:

Direct materials	$5.00
Direct labor	3.00
Variable overhead	1.50
Fixed overhead*	7.00
Variable marketing cost	1.20

^* Fixed overhead per unit = $322,000 / 46,000 units produced = $7.00

Total fixed factory overhead is $322,000 per month. During October, 44,700 units were sold at a price of $24.5, and fixed marketing and administrative expenses were $124,600.

Required:

1. Calculate the cost of each unit using variable costing. Round your final answer to the nearest cent.

$ per unit

2. How many units remain in ending inventory? units

What is the cost of ending inventory using variable costing? $

3. Prepare a variable-costing income statement for Pattison Products, Inc., for the month of October.

Pattison Products, Inc.
Variable-Costing Income Statement
For the Month of October
Sales	$
Less:
Variable cost of goods sold
Variable marketing expense
Contribution margin	$
Less:
Fixed factory overhead
Fixed marketing and administrative expenses
Operating income	$

4. What if November production was 46,000 units, costs were stable, and sales were 47,000 units? What is the cost of ending inventory? $

What is operating income for November? $