Given the following information [daily basis] on a manufacturing company, calculate (a) contribution margin on a per unit basis, (b) contribution margin on a total dollar basis, and (c) fixed costs.
Average selling price for manufacturer’s product = $5.00
Daily Break-even level [units] = 10,000
Variable cost per unit = $0.50
Assume that the variable cost per unit in the previous problem = standard cost per unit and that daily break-even level of units = amount actually purchased. If the actual cost per unit at the time of purchase increases 10%, what is the variance for total variable cost? Is financial impact positive or negative?