Acker, Inc. has the following cost data for Product X, and unit product cost usi

Question

Acker, Inc. has the following cost data for Product X, and unit product cost using variable costing when production is 900 units, 1,800 units, and 3,600 units. Product X sells for $160 per unit. Assume no beginning inventories. Calculate the contribution margin using variable costing when Acker: a. Produces and sells 900 units. b. Produces 1,800 units and sells 900 units. EEB (Click on the icon to view the data.) (Click on the icon to view the unit product cost data.) c. Produces 3,600 units and sells 900 units. Begin by selecting the labels and computing the contribution margin for scenario a. and then compute the contribution margin for scenario b. and c. Variable costing a. C. Contribution Margin

Explanation / Answer

Variable costing income statement :

a b c Sales revenue (900*160) 144000 144000 144000 Variable cost (900*115) 103500 103500 103500 Contribution margin 40500 40500 40500

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