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Top Disc manufactures flying disks. The following information is available for the year, the companys first year in business when it produced 715,000 units. Revenue
Top Disc manufactures flying disks. The following information is available for the year, the companys first year in business when it produced 715,000 units. Revenue of $990,000 was generated by the sale of 396,000 flying disks.
Variable Cost | Fixed Cost | |
Production | ||
Direct material | $330,000 | |
Direct labor | 220,000 | |
Overhead | 165,000 | $247,500 |
Selling and administrative | 198,000 | 220,000 |
a. What is the variable production cost per unit? b. What is the total contribution margin per unit? c. Prepare a variable costing income statement. Note: Only use a negative sign to indicate a net loss (if applicable).
Income Statement | |
---|---|
For the Year | |
Sales revenue | |
Less variable costs | |
Cost of goods sold | |
Selling and administrative | |
Contribution margin | |
Less fixed expenses | |
Manufacturing overhead | |
Selling and administrative | |
Net income (loss) |
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