managerial accounting

For year ended December 31, 2006, firm a produced and sold 12,000 units of product. Fixed expenses associated with producing the product totaled $4000 for the year. A variable cost of $3.20 per unit was incurred to produce the product. Fixed expenses associated with selling the product totaled $ 2,700 for the year, while fixed costs associated with overall administration totaled $3,000 for the year. A variable cost of $0.40 per unit was incurred for product selling, while a variable cost of $0.30 per unit was associated with overall administration. A price of $6.25 per unit was realized on each unit of product sold.


a. using absorption costing as the basis, please present operating income for the year using the traditional income statement format.

b. now using variable costing as the basis, prepare an income statement for the year in the contribution margin format.

c. please determine the contribution margin per unit and the contribution margin ratio.

asked by mz nailz

Respond to this Question

First Name

Your Answer

Similar Questions

  1. accounting

    During Denton Company’s first two years of operations, the company reported absorption costing net operating income as follows: Year 1 Year 2 Sales (@ $64 per unit) $ 1,216,000 $ 1,856,000 Cost of goods sold (@ $32 per unit)
  2. accounting

    The E-Company The E-Company manufactures trendy, high-quality moderately priced watches that it sells on the Internet. As the company's senior financial analyst, you are asked to analyze the overall profitability fo the current
  3. college/ accounting

    The E-Company The E-Company manufactures trendy, high-quality moderately priced watches that it sells on the Internet. As the company's senior financial analyst, you are asked to analyze the overall profitability fo the current
  4. accounting

    "Harris Company manufactures and sells a single product. A partically completed schedule of the company's total and per unit cost over the relevant range of 30,000 to 50,000 per units produced and sold are: United produced and
  5. accounting

    The accounting records of NuTronics, Inc., include the following information for the year ended December 31, 2011. Dec. 31 Jan. 1 Inventory of materials $ 24,000 $ 20,000 Inventory of work in process 8,000 12,000 Inventory of
  6. accounting

    ABC's Product information Current Product Expansion Product (estimate) Selling Price $14.50 $ Units produced and expected to be sold 80,000 5,000 Machine Hours 40,000 5,000 Direct Materials $1.30 per unit $5.60 per unit Direct
  7. accounting

    Walk talk manufacture a cordless telephone system . At the beginning of the financial year ending 30 Nov 2009 , the firm budgeted to make and sell 50,000 units of its only product , the NOVA at the selling price of 30 $ per unit .
  8. Accounting

    Adelphia Corporation, which uses absorption costing, just completed its first year of operations. Planned and actual production equaled 13,000 units, and sales totaled 11,700 units at $184 per unit. Cost data for the year are as
  9. Accounting

    Adelphia Corporation, which uses absorption costing, just completed its first year of operations. Planned and actual production equaled 13,000 units, and sales totaled 11,700 units at $184 per unit. Cost data for the year are as
  10. Math

    The nutritionistof FLC Foods, Inc. designed a new product for everybody's consumption and believes that the variable cost in producing the said product is Php950.00 per unit and the fixed cost is Php60,000. Write the total cost as

More Similar Questions