D E 9 B 1 Addison, Inc. makes a single product, an indoor fireplace. Data for last year is as follows: 2 3 Selling price per fireplace $420 4 Manufacturing costs: 5 Variable per unit produced: 6 Direct materials $135 7 Direct labor $43 8 Variable manufacturing overhead $37 Fixed manufacturing overhead per year $210,000 10 Selling and administrative expenses: 11 Variable per unit sold $45 12 Fixed per year $190.000 13 14 Units in beginning inventory 0 15 Units produced during the year 5,000 16 Units sold during the year 4,500 17 18 Use the data to answer the following. 19 20 1. Assume the company uses variable costing: 21 22 Compute the unit product cost for one fireplace S 215 23 24 Prepare a contribution margin income statement for the year Sheet1 READY miel + 100% AMO Font D E 215 S 1,890.000 B 22 Compute the unit product cost for one fireplace 23 24 Prepare a contribution margin income statement for the year 25 26 Sales 27 Variable expenses: 28 Variable cost of goods sold 29 Variable selling and administrative expenses 202.500 30 Contribution margin 31 Fixed expenses: 32 Fixed manufacturing overhead 210.000 33 Fixed selling and administrative expenses 190.000 34 Net operating income 35 36 Compute the number of fireplaces required to breakeven 37 38 2. Assume the company uses absorption costing: 39 40 Compute the unit product cost for one fireplace 41 42 Prepare an income statement for the year 43 44 Sales $ 45 Cost of goods sold 46 Gross margin Sheet1 1,890.000 ** 1 READY 11 Formatting" Table Styles Styles Clipboard Font B28 v f A D E B 202,500 210.000 190.000 29 Variable selling and administrative expenses 30 Contribution margin 31 Fixed expenses 32 Fixed manufacturing overhead 33 Fixed selling and administrative expenses 34 Net operating income 35 36 Compute the number of fireplaces required to breakeven 37 38 2. Assume the company uses absorption costing: 39 40 Compute the unit product cost for one fireplace 41 42 Prepare an income statement for the year 43 44 Sales 45 Cost of goods sold 46 Gross margin 47 Selling and administrative expenses 48 Net operating income 49 50 51 52 1,890,000