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2. Hulk Company was founded in 20x8 and has been selling a single product. Data for the company's operations each year follow: Selling price per
2. Hulk Company was founded in 20x8 and has been selling a single product. Data for the company's operations each year follow: Selling price per unit W100 Variable expense per unit - Direct materials 10 - Direct labor 20 - Variable manufacturing overhead 10 - Variable SG&A 10 Fixed manufacturing overhead 10,000 Fixed SG&A 2,000 Data for the units produced and units sold in 20x8 and 20x9 follow: 20x8 20x9 Units produced Units sold 400 300 400 500 Assume Hulk Company has no Work-in-Process inventories. (1) Assume that the company uses variable costing and prepare the income statement in 20x9. (10 point) (2) Assume that the company uses absorption costing and prepare the income statement in 20x9. (10 point) (3) If units produced in 20x9 increases to 500, how does the income statement prepared in (1) change? (10 point) (4) If units produced in 20x9 increases to 500, how does the income statement prepared in (2) change? (10 point)
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