## Answers

a | |||

Unit product cost | 10 | ||

b | |||

Super Variable Costing Income Statement | |||

Sales | 480000 | =12000*40 | |

Variable cost of goods sold | 120000 | =12000*10 | |

Contribution margin | 360000 | ||

Fixed expenses: | |||

Direct labor | 75000 | ||

Fixed manufacturing overhead | 150000 | ||

Fixed selling and administrative expenses | 50000 | ||

275000 | |||

Net operating income | 85000 |

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