1. Variable Costing, Value of Ending Inventory, Operating Income

   Pattison Products, Inc., began operations in October and manufactured 46,000 units during the month with the following unit costs:

   Direct materials	$4.80
   Direct labor	2.80
   Variable overhead	1.40
   Fixed overhead*	6.80
   Variable marketing cost	1.10

   ^* Fixed overhead per unit = $312,800 / 46,000 units produced = $6.80

   Total fixed factory overhead is $312,800 per month. During October, 44,800 units were sold at a price of $25, and fixed marketing and administrative expenses were $113,700.

   Required:

   1. Calculate the cost of each unit using variable costing. Round your final answer to the nearest cent.

   $ per unit

   2. How many units remain in ending inventory? units

   What is the cost of ending inventory using variable costing? $

   3. Prepare a variable-costing income statement for Pattison Products, Inc., for the month of October.

   Pattison Products, Inc.
   Variable-Costing Income Statement
   For the Month of October
   	$
   Less:
   Contribution margin	$
   Less:
   Operating income	$

   4. What if November production was 46,000 units, costs were stable, and sales were 47,000 units? What is the cost of ending inventory? If an amount is zero, enter "0". $

   What is operating income for November? $