Princeton Fabrication, Inc., produced and sold 1,300 units of the company's only product in March. You have collected the following information from the accounting records:

Sales price (per unit)	$	130
Manufacturing costs:
Fixed overhead (for the month)		16,900
Direct labor (per unit)		7
Direct materials (per unit)		34
Variable overhead (per unit)		26
Marketing and administrative costs:
Fixed costs (for the month)		23,400
Variable costs (per unit)		3

Required:

(a)

Compute the following:

1.	Variable manufacturing cost per unit.
2.	Full cost per unit.
3.	Variable cost per unit.
4.	Full absorption cost per unit.
5.	Prime cost per unit.
6.	Conversion cost per unit.
7.	Profit margin per unit.
8.	Contribution margin per unit.
9.	Gross margin per unit.

(b)

If the number of units decreases from 1,300 to 1,000, which is within the relevant range, fixed manufacturing cost per unit will:

	Not change
	Decrease
	Increase

(which one ^)