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 260,000 units. Revenue of $360,000 was generated by the sale of 144,000 flying disks.

	Variable Cost	Fixed Cost
Production
Direct material	$120,000
Direct labor	80,000
Overhead	60,000	$90,000
Selling and administrative	72,000	80,000

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	Answer
Less variable costs
Cost of goods sold	Answer
Selling and administrative	Answer
Contribution margin	Answer
Less fixed expenses
Manufacturing overhead	Answer
Selling and administrative	Answer
Net income (loss)	Answer