7/10 awarded eBook Print ferences Discon Corporation manufactures a popular doll called Teardrops. Last year the company started with 10,500 dolls, produced 230,000 dolls, and ended the year with 8,500 dolls. Each doll was sold for $22. The actual unit cost for leardrops is given below Direct material Direct labour variable overhead Fixed overhead Total unit cost $2.50 0.60 3.00 7.90 $14.00 The only selling expenses were a commission of $3 per unit sold and advertising amounting to $355,000. Administrative expenses, all fixed, equalled $275,000. There were no beginning and ending work-in-process inventories. Required: 1. Prepare an income statement. Discon Corporation Income Statement For the Year Ended December 31, XXXX Sales $ 5,104,000 Cost of goods sold 3,248,000 Gross margin M 1,856,000 Selling and administrative expenses Commissions 690,000 < Prev 3 of 3 Next