Variable costing income statement
Top Disc manufactures frisbees. The following information is available for 2013, the company’s first year in business when it produced 325,000 units. Revenue of $450,000 was generated by the sale of 180,000 frisbees.
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Variable Cost
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Fixed Cost
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Production
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Direct material
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$150,000
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|
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Direct labor
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100,000
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|
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Overhead
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75,000
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$112,500
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Selling and administrative
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90,000
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100,000
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a. What is the variable production cost per unit?
b. What is the total contribution margin per unit?