Variable and Absorption Costing
During its first year, Walnut, Inc., showed an $27 per-unit profit under absorption costing but would have reported a total profit $24,000 less under variable costing. If production exceeded sales by 500 units and an average contribution margin of 62.5% was maintained, what is the apparent:
a. Fixed cost per unit?
$Answer 1 per unit
b. Sales price per unit?
$Answer 2 per unit
c. Variable cost per unit?
$Answer 3 per unit
d. Unit sales volume if total profit under absorption costing was $216,000 ?
Answer 4 units