17.

Ellie Inc. manufactures stuffed animals. During 2021, total costs incurred in making 1,000 stuffed animals included $10,000 of selling, general, and administrative costs. The selling price per stuffed animal was $60, while per unit costs were $20 for direct materials, $10 for direct labor, and $5 for manufacturing overhead. (a.) Prepare a traditional income statement based on the 1,000 stuffed animals. (b.) Calculate the gross margin ratio.

18. Audrey Inc. manufactures dolls. During 2021, total costs incurred in making 20,000 dollsincluded $100,000 of fixed manufacturing overhead. The total absorption cost per doll was $30. (a.) Calculate the variable cost per doll. (b.) Express the cost of the dolls in a cost formula (Y=a+bx).