Variable and Absorption Costing
During its first year, Walnut, Inc., showed an $36 per-unit profit under absorption costing but would have reported a total profit $32,000 less under variable costing. If production exceeded sales by 500 units and an average contribution margin of 62.5% was maintained, what is the apparent:
a. Fixed cost per unit? $ per unit
b. Sales price per unit? $ per unit
c. Variable cost per unit? $ per unit
d. Unit sales volume if total profit under absorption costing was $198,000? How many units