Variable and Absorption Costing During its first year. Walnut, Inc., showed an $18 per-unit profit under absorption costing but would have reported a total profit $16,000 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? b. Sales price per unit? c. Variable cost per unit? d. Unit sales volume if total profit under absorption costing was $198,000? Variable and Absorption Costing Chandler Company sells its product for $100 per unit. Variable manufacturing costs per unit are $40, and fixed manufacturing costs at the normal operating level of 12,000 units are $240,000. Variable selling expenses are $16 per unit sold. Fixed administrative expenses total $104,000. Chandler had no beginning inventory in 2016. During 2016, the company produced 12,000 units and sold 9,000. Would net income for Chandler Company in 2016 be higher if