(Variable costing income statement) High Flight Toys manufactures Frisbees. The following information is available for 2010, the company’s first year in business when it produced 300,000 units. Revenue of $480,000 was generated by the sale of 180,000 Frisbees.
Variable Cost
Fixed Cost
Production
Direct material
$150,000
Direct labor
100,000
Overhead
75,000
$112,500
Selling and administrative
90,000
100,000
a. What is the variable production cost per unit?
b. What is the total contribution margin per unit?
c. Prepare a variable costing income statement.