Boat Refit Inc. produces and sells custom parts for powerboats. The company uses a costing system based on actual costs. Selected accounting and production information for fiscal 2012 is as follows:
Net income (under absorption costing) .................................... $ 400,000
Sales ............................................................................ $3,400,000
Fixed factory overhead .................................................... $ 600,000
Fixed selling and administrative costs (all costs are fixed) .......... $ 400,000
Net income (under variable costing) ..................................... $ 310,000
Units produced .................................................................. 2,000
Units sold .............................................................................. ?
Boat Refit had no work in process inventory at either the beginning or the end of fiscal 2012. As well, the company did not have any finished goods inventory at the beginning of the fiscal year.
Instructions
(a) Calculate the units sold in fiscal 2012.
(b) Calculate the total contribution margin under variable costing.
(c) Calculate the gross margin under absorption costing.
(d) Calculate the cost per unit sold under variable costing.
(e) Calculate the cost per unit sold under absorption costing?