The following information is available for Skipper Pools, a manufacturer of abov
ID: 2416038 • Letter: T
Question
The following information is available for Skipper Pools, a manufacturer of above-ground swimming pool kits:2014 2015 Total Units produced 12,410 9,390 21,800 Units sold 10,900 10,900 21,800 Selling price per unit $3,990 $3,990 Direct material per unit $770 $770 Direct labor per unit $1,500 $1,500 Variable manufacturing overhead per unit $299 $299 Fixed manufacturing overhead per year $2,544,050 $2,544,050 Fixed selling and administrative expense per year $1,454,600 $1,454,600
In its first year of operation, the company produced 12,410 units but was able to sell only 10,900 units. In its second year, the company needed to get rid of excess inventory (the extra 1,510 units produced but not sold in 2014), so it cut back production to 9,390 units.
Explanation / Answer
Answer:
Variable costing Income Statement Particulars 2014 2015 Sales 43491000 43491000 Variable expenses: Variable cogs 28002100 27877500 Total variable expenses 28002100 27877500 Contribution margin 15488900 15613500 Fixed expenses: Fixed manufacturing overhead 2544050 2544050 Fixed selling and administrative expenses 1454600 1454600 Total fixed expenses 3998650 3998650 Net income 11490250 11614850Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.