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Consider the following information for Presidio Inc.'s most recent year of operations. Additional Information for Presidio's most recent year of operations follows: Number of units
Consider the following information for Presidio Inc.'s most recent year of operations. Additional Information for Presidio's most recent year of operations follows: Number of units produced 2,189 Number of units sold 1,350 Unit sales price $ 6ee.ee Direct materials per unit 50.00 Direct labor per unit 88.89 Variable manufacturing overhead per unit 30.00 Fixed manufacturing overhead per unit ($246,960 117.60 + 2,1ee units) Total variable selling expenses (511 per unit 14,850.00 sold) Total fixed general and administrative expenses 71,888.89 Required: 2. Complete a full absorption costing Income statement and a variable costing Income statement for Presidio. Assume there was no beginning inventory. Presidio, Inc. Full Absorption Income Statement S Sales 810,000 374,760 Less: Cost of Goods Sold Gross Margin Less: Selling Expense General and Administrative Expense Net Operating Income Presidio, Inc. Contribution Margin Income Statement Sales revenue Less: Variable Manufacturing Costs Contribution margin Less: Fixed Manufacturing Costs Fixed General and Administrative Expense Net Operating Income 3. Compute the difference in profit between full absorption costing and variable costing. Difference in Profit
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