Question: (computing manufacturing margin)

D' Souza Company sold10,000 units of its product at a price of $80 per unit. Total variable cost is $50 per unit, consisting of $40 in variable production costs and $10 in variable selling and administration cost. Compute the manufacturing (production) margin for the company under variable costing.

Exercise 19-9
Calculate product cost per unit under each method:
	Absorption	Variable
Direct materials
Direct labor
Variable overhead			(given in problem)
Fixed overhead
Product cost per unit
Prepare an income statement using Absorption Costing
Cool Sky Company
Income Statement - Absorption
Sales		5,040,000	(36,000 units sold x $140 selling price)
Cost of goods Sold
Gross Profit
Operating Expenses:
Var. Selling and Admin
Fixed Selling and Admin
Net Income
Prepare an income statement using Variable Costing
Cool Sky Company
Income Statement - Variable
Sales
Variable Expenses:
Direct materials
Direct labor
Variable overhead
Total Variable product cost
Variable Selling and admin
Total Variable
Contribution Margin
Fixed Expenses
Fixed overhead			(use full amount from problem)
Fixed selling and admin			(given in problem)
Total Fixed
Net Income