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Company, which has only one product, has provided the following data concerning its first month of operations:
Selling price $100
Units produced 6,000
Units sold 5,500
Variable product costs per unit $50
Variable selling and administrative costs per unit $10
Fixed manufacturing costs $90,000
Fixed selling and administrative costs $55,000
Find:
a. Prepare a variable costing income statement for the month using variable costing (assume no taxes).
b. What is the gross profit margin per unit?
c. Prepare an income statement for the month using absorption costing (assume no taxes).
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