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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.
Variable Cost
Fixed Cost
Production
Direct material
$150,000
Direct labor
100,000
Overhead
75,000
$112,500
Selling and administrative
90,000
a. What is the variable production cost per unit?
b. What is the total contribution margin per unit?
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