Variable costing income statement Top Disc manufactures flying disks. The following information is available for the year, the companys first year in business when it produced 130,000 units. Revenue of $180,000 was generated by the sale of 72,000 flying disks.

	Variable Cost	Fixed Cost
Production
Direct material	$60,000
Direct labor	40,000
Overhead	30,000	$45,000
Selling and administrative	36,000	40,000

a. What is the variable production cost per unit? $Answer b. What is the total contribution margin per unit? $Answer 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)