# Managerial Accounting:Absorption costing VS variable costing

Abbitt Company, which has only one product, has provided the following data concerning its most recent month of operations:

19. What is the unit product cost for the month under variable costing?

A) $80

B) $119

C) $113

D) $86

20. What is the unit product cost for the month under absorption costing?

A) $86

B) $119

C) $113

D) $80

21. The total contribution margin for the month under the variable costing approach is:

A) $66,700

B) $128,800

C) $46,300

D) $142,600

22. The total gross margin for the month under the absorption costing approach is:

A) $11,500

B) $66,700

C) $89,300

D) $128,800

23. What is the net operating income for the month under variable costing?

A) $4,900

B) $11,500

C) $6,600

D) ($11,100)

24. What is the net operating income for the month under absorption costing?

A) ($11,100)

B) $11,500

C) $6,600

D) $4,900

https://brainmass.com/business/accounting/managerial-accounting-absorption-costing-vs-variable-costing-94002

#### Solution Summary

Solution contains calculations of contribution margin ,cost per unit and net operating income under absorption costing and variable costing.