Solution
Flexible Actual Budgeted
Unit sold 27,800 units 27,800 units 28,100 units
$ $ $
Sales price $ 24 $ 20 $ 24
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Total Revenue 667,200 556,000 674,400
Variable costs 55,600 112,000 56,200
($2 ×28,100)
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Contribution margin 611,600 444.000 618,200
Fixed costs 52,000 54,000 52,000
---------------------------------------------------------- Operating Income 559,600 390,000 566,200
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Total cost 107,600 1.66,000 108,200
cost per unit
(Total cost ÷ total units) 3.87 5.97 3.85
