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Consider the following information for Presidio Incorporated's most recent year of operations. Number of units produced- 2,500 Number of units sold 1,500 Sales price
Consider the following information for Presidio Incorporated's most recent year of operations. Number of units produced- 2,500 Number of units sold 1,500 Sales price per unit $ 750.00 Direct materials per unit 55.00 Direct labor per unit 85.00 Variable manufacturing overhead per unit 35.00 Fixed manufacturing overhead per unit ($297,750 + 2,500 units) Total variable selling expenses ($14 per unit sold) 119.10 21,000.00 Total fixed general and administrative expenses 86,000.00 Required: 2-a. Complete a full absorption costing income statement for Presidio. Assume there was no beginning inventory. 2-b. Complete a contribution margin income statement for Presidio. Assume there was no beginning inventory. 3. Compute the difference in profit between full absorption costing and variable costing.
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