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1. what is the unit product cost under variable costing? 2. what is the company's total contribution margin under veriable costing? 3. what is the
1. what is the unit product cost under variable costing?
2. what is the company's total contribution margin under veriable costing?
3. what is the company's total gross margin under absorption costing?
4. what is the company's net operating income (loss) under absorption costing?
5. what is the amount of the difference between the variable costing and absorption costing net operating incomes (losses)?
6. if the sales volumes in the east and west regions had been reversed, what would be the company's overall break-even point in unit sales?
7. what would have been the company's variable costing net operating income (loss) if it had produced and sold 42,000 units?
8. if the company produces 5,000 fewer units than it sells in its second year of operations, will absorption costing net operating income be higher or lower than variable costing net operating income in year 2? lower or higher
9. prepare a contribution format segmented income statement that includes a total column and columns for the east and west regions.
10. assume the west region invests $37,000 in a new advertising campaign in year 2 that increases its unit sales by 20%. if all else remains constant, what would be the profit impact of pursuing the advertising campaign?
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