Problem Five + The following table summarizes production costs and sales pries for Elite Gears during 2018: Sales price per unit $ 11.25 Variable factory overhead costs per unit $ 1.45 Direct materials costs per unit $ 160 Variable operating costs per unit Direct labor costs per unit $ 0.70 Total fixed factory overhead costs S 4,140 Total fixed operating costs $ 3,150 costs per unit $ 1.95 A. How much is the unit product cost under abortion costing if 3.000 units are produced? What happens to this cost when 3,500 units are produced, and why? 4,140 3,000 1.36 1-GO = $5,13 4140 3600 1.16 1.D - $4.93 perunit st B. How much is the unit product cost under variable costing if 3,000 units are produced? What happens to this cost when 3,500 units are produced? 1.60 7.70 + 1.45 $3.75 por unit C. Assume there are no beginning inventories. Also assume Elite produced and sold 1.800 units. calculate the following amounts and interpret the meaning of each as it applies to Elite Gears. 1. Gross margin per unit 2. Total gross margin 3. Gross margin ratio 4. Contribution margin per unit 9990/1800 - $5.55 per unit 5. Total contribution margin 6. Contribution margin ratio 0990 9990/20.25049.33 Variable Sales (11.25x1800) 20250 Absorption COGS sales (1125x1600) 20250 O IGO Y16002880 COGS OL 0.70 1800 1200 om 2280 Umow 1.45X1800 2010 OL 1200 - 1.05x1800 = 3510 10260 Mon 2010 Contribution 4140 9990 molt Margin Gross Margin 9 of 10