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Top Disc manufactures frisbees. The following information is available for 2013, the companys first year...

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Question

Accounting

Top Disc manufactures frisbees. The

following information is available for 2013, the companys 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 90,000 100,000

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.

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