Testing Inc. had the following amounts:

Direct materials $8 per unit

Direct Labor $15 per unit

Variable overhead $5 per unit

Fixed overhead $90,000

Variable selling expenses $3 per unit

Fixed selling and admin. expenses $150,000

75,000 units produced

60,000 units sold at $40 each

Calculate the VARIABLE product cost per unit and prepare a Contribution Margin Income Statement under Variable Costing in order to fill in the rest of the information. (Remember you can submit your calculations for possible partial credit.)

Variable product cost per unit $ =

Total Sales in dollars $ =

Contribution Margin $ =

Net Income $ =