#35

Loveman Inc produces giant teddy bears for Valentine's Day. The selling price per teddy bear is $100. Loveman produced 8,000 teddy bears and sold 8,700 teddy bears. Costs involved in production are: Direct Material per unit $20 Direct Labor per unit $12 Variable manufacturing overhead per unit $10 Fixed manufacturing overhead per year $148,500 Fixed S&A per year, $100,000 Variable S&A per unit $2 A. Compute the Gross Margin using an Absorption Costing (Full) Income Statement? Please show your worki Please round all figures to two decimals. (5 points) B. Compute the Net Income using an Variable Costing Income Statement Please show your work! (5 points)