A business operated at 100% of capacity during its first month and incurred the following costs:...

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A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (20,600 uni

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Answer 1

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Answer #1

: The Variable Costing Income Statement

No. of Unit Sold	18600
Sales	$1,083,000
Less: Variable cost
variable Manaufacturing cost (179800+228700+241100)/20600 = $31.53 (31.53X18600)	$586,458
Variable Operatign Expense	$126,000
Contribution margin	$370,542
Fixed expense:
Fixed Factory Overhead	$95,100
Fixed Operating Expnese	$42,100
Net operating Income	$233,342

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Answer 2

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