A Calgary manufacturer, Snowshoe Co$.,$ sold $20,000$ pairs of snowshoes in $2011.$ Below is a

partial list of the company accounts:

Sales $$1,500,000$

Direct materials used $$760,000$

Direct Labour $$95,000$

Variable Manufacturing Overhead $$152,000$

Fixed Manufacturing Overhead $$25,000$

Variable Selling and Admin Expenses $$120,000$

Fixed Selling and Admin Expenses $$40,000$

There are $6,000$ units in inventory at the beginning of the year and

$5,000$ units in inventory at the end of the year. The company uses

variable costing. There has been no change in the variable cost per unit

from $2010$ to $2011.19,000$ units were manufactured in $2011.$

$1.$ What is the variable cost of good manufactured cost per unit? List the components and show your calculations?

$2.$ Prepare a contribution Format Income Statement?

$3.$ What is the contribution ratio?

$4.$ What is the contribution per unit?

$5.$ What is the break even point in units?

$6.$ What is the break even point in sales dollars?

$7.$ How many units need to be sold to realize a net income of $$300,000?$

$8.$ What amount will the ending inventory on the balance sheet be in dollars under the variable costing approach?

$9.$ What is the cost per unit under absorption costing for $2011?$

$10.$ What amount will the ending inventory on the balance sheet be in dollars under the absorption costing approach?

$10.$ Why is there absorption costing?