Can you help me with question $50.$ The answers go on the second document.

musurpuon vosttng versus Variable Costing. Sparks, Inc., produces tricycles. The company has no finished goods inventory at the beginning of year 1. The following information pertains to Sparks, Inc.: Annual Production Sales Price Variable Production Cost Per Unit Direct Materials Direct Labor Manufacturing Overhead Fixed Production Costs Variable Selling and Administrative Cost Fixed Selling and Administrative Cost Required: BIC'D' Score L $24 $16 $20 60,000 units $160 per unit $60 per unit $480,000 each year; $8 per unit at 60,000 units of production $4 per unit $ 160,000 each year 10 12 15 16 17 18 19 20 22 23 25 30 33 38 39 40 42 43 4S 46 47 4B 49 - 50. b. Absorption Costing versus Variable Costing (l) Traditional income statement (absorption costing), year J : Sales Cost of goods sold Gross margin -Selling and administrative costs Operating profit 4 080 ooo (2) Contribution margin inconk statement (variable costing), ytnr J : Sales Variable costs: Cost of goods sold Selling and administration Total variable costs Contribution margin Fixed costs.' Cost of goods sold Selling and administration Total fixed costs Operating profit s 5,760.000 a. All 60,000 units produced during year 1 are sold during year 1. 1. Prepare a traditional income statement assuming the company uses absorption costing. 2. Prepare a contribution margin income statement assuming the company uses variable costing. b. Although 60,000 units are produced during year 2, only 40,000 are sold during the year. The remaining 20,000 units are in finished goods inventory at the end of year 2. 1. - Prepare a traditional income statement assuming the company uses absorption costing. 2. Prepare a contribution margin income statement assuming the company uses variable costing. Problems 51. CVP and Sensitivity Analysis (Single Product). Victoria, Inc., has annual fixed costs totaling $240,000 and variable costs of $6 per unit. Each unit of product is sold for $30. Victoria expects units this year (this is the base case). (1) (2) Traditional incorne statement (absorption costing), 2: Sales Cost of gik)d.s sold Gross margin Selling and administrative costs Operating profit Contribution rnargin inconE statert*nt (vanable costing). 2: Sales Variable costs: Cost of goods sold Selling md ulrninistration Total variable costs ContnbutDn rnzgin Fixed costs: Cost of sold Sellmg nd Total fixed cosu Opeatmg profit S 0 400(00 Correct Corrt Incorrect Incorrect Incorrect Incorrect Incorrt Incorrect Incorrect Correct Incorrect Incorrect Conrvt