Aces Incorporated, a manufacturer of tennis rackets, began operations this year. The company produced 6,500 rackets and sold 5,400. Each racket was sold at a price of $95. Fixed overhead costs are $87750 for the year, and fixed selling and administrative costs are $65700 for the year. The company also reports the following per unit variable costs for the year. Direct materials Direct labor Variable overhead Variable selling and administrative expenses Required: Prepare an income statement under variable costing, $ 12.15 8.15 5.20 2.50 Answer is not complete. ACES INCORPORATED Variable Costing Income Statement Sales $ 513,000 Vonable expenses Variable cost of goods sold 145.000 Variable seling and administrative expenses 145,000 3 0 201 200 Contribution margin Fond expenses Funderad S 87.750 Fixed selling and administrative costs 65,709 153,450 ooo o OOOO Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.) Felix & Company reports the following information. Period 1 2 3 4 5 6 7 8 9 10 Units Produced 0 400 800 1,200 1,600 2,000 2,400 2,800 3,200 3,600 Total Costs $ 2,555 3,355 4,155 4,955 5,755 6,555 7,355 8,155 8,955 9,755 Exercise 18-5 (Algo) Measuring costs using high-low method LO P1 (1) Use the high-low method to estimate the fixed and variable components of total costs. (2) Estimate total costs if 3,000 units are produced. (1) Use the high-low method to estimate the fixed and variable components of total costs, (2) Estimate total costs if 3,000 units are produced. 0 High-Low method - Calculation of variable cost per unit Costat high point minus.cost at low point Volume at high point minus volume at low point High-Low method - Calculation of fixed costs Total cost at the high point Variable costs at the high point Volume at the high point Variable cost per unit Total variable costs at the high point Total fixed costs Total cost at the low point Variable costs at the low point Volume of the low point Variable cost per unit Total vanable costs at the low point Total lixed costs 12) Estimated cost 3.000 units are produced: Estimated total cost Exercise 18-7 (Algo) Contribution margin LO A1 Ajeans maker is designing a new line of jeans called Slams. Slams will sell for $360 per unit and cost $262.80 per unit in variable costs to make. Fixed costs total $63,500. (Round your answers to 2 decimal places.) Answer is not complete. 1. Compute the contribution margin per unit Sales 360.00 per unit Less Varable cost 262 80 per unit Contribution margin 97 20 por unit 2. Compute the contribution margin ratio. Numerator Denominator: Contribution margin por unit Selling price per unit 97 20 $ 360 00 3. Compute income if 5,700 units are produced and sold Into Contribution Margin Ratio Contribution margin ratio 27.00%
