Question - 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 $150,000.00
Direct labor 100000
Overhead 75000 $112,500.00
Selling & administrative 90000 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.