Princeton Fabrication, Inc., produced and sold 1,200 units of the company’s only product in March.

Princeton Fabrication, Inc., produced and sold 1,200 units of the company’s only product in March. You have collected the following information from the accounting records:

 

Sales price (per unit) ——————. $ 896

Manufacturing costs:

Fixed overhead (for the month) ——————– 100,800

Direct labor (per unit)———- 70

Direct materials (per unit) —————- 224

Variable overhead (per unit) ————– 140

Marketing and administrative costs:

Fixed costs (for the month) ————- 134,400

Variable costs (per unit) ————– 28

 

Required

 

a.) Compute:

 

     1. Variable manufacturing cost per unit.

     2. Full cost per unit.

     3. Variable cost per unit.

     4. Full absorption cost per unit.

     5. Prime cost per unit.

     6. Conversion cost per unit.

     7. Profit margin per unit.

    8. Contribution margin per unit.

    9. Gross margin per unit.

 

b) If the number of units decreases from 1,200 to 800, which is within the relevant range, will the fixed manufacturing cost per unit increase, decrease, or remain the same? Explain.