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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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