For the coming year, Hill Computers Inc. expects to produce 200,000 computers. Of these, 80,000 will be consumer (personal) computers and 120,000 will be small business computers. Common fixed overhead is $700,000. Additional information for the coming year is as follows:

Fixed selling and administrative expense for Hill Computers, Inc. is $3,460,000 per year.

Required:
1. Calculate the unit variable cost under variable costing. Is this cost the same as unit variable product cost? Why or why not?
2. Prepare a segmented variable-costing income statement for next year. The segments correspond to product lines: consumer computers and small businesscomputers.

Small Business Consumer Computer $ 780 500 160 40 75 120,000 Computer Price Unit direct materials Unit direct labor Unit variable overhead Unit variable selling expense Total direct fixed overhead 2,300 1,800 290 75 70 200,000