For the coming year, Paulson Computers Inc. expects to produce 144,000 computers. Of these,64,000 will be consumer (personal) computers and 80,000 will be small business computers. Com-mon fixed overhead is $1,700,000. Additional information for the coming year is as follows:

Fixed selling and administrative expense for Paulson Computers is $2,960,000 per year.
Required:
1. Calculate the unit variable cost under variable costing. Isthis 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 corre-spond to product lines: consumer computers and small business computers.

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Consumer Computers Small Business Computers Price Unit direct materials Unit direct labor Unit variable overhead Unit variable selling expense Total direct fixed overhead S 640 490 90 23 35 20,000 S 1,675 1,180 310 50 65 350,000