Question
Diego Company manufactures one product that is sold for $81 per unit. The following information pertains to the companys first year of operations in which
Diego Company manufactures one product that is sold for $81 per unit. The following information pertains to the companys first year of operations in which it produced 52,000 units and sold 47,000 units.
7. What is the amount of the difference between the variable costing and absorption costing net operating incomes (losses)?
1. What is the companys break-even point in unit sales?
9. What would have been the companys variable costing net operating income (loss) if it had produced and sold 47,000 units?
10. What would have been the companys absorption costing net operating income (loss) if it had produced and sold 47,000 units?
Required information [The following information applies to the questions displayed below.] Diego Company manufactures one product that is sold for $81 per unit. The following information pertains to the company's first year of operations in which it produced 52,000 units and sold 47,000 units. Variable costs per unit: Manufacturing: Direct materials Direct labour Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses $ $ $ $ 20 20 4 6 $936,000 $552,000 7. What is the amount of the difference between the variable costing and absorption costing net operating incomes (losses)? Difference of Variable Costing and Absorption Costing Net Operating Incomes Variable costing net operating income (loss) Absorption costing net operating income (loss) Required information [The following information applies to the questions displayed below. Diego Company manufactures one product that is sold for $81 per unit. The following information pertains to the company's first year of operations in which it produced 52,000 units and sold 47,000 units. Variable costs per unit: Manufacturing: Direct materials Direct labour Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses $ $ $ $ 20 20 4 6 $936,000 $552,000 1. What is the company's break-even point in unit sales? Break even point units ! Required information (The following information applies to the questions displayed below.) Diego Company manufactures one product that is sold for $81 per unit. The following information pertains to the company's first year of operations in which it produced 52,000 units and sold 47,000 units. Variable costs per unit: Manufacturing: Direct materials Direct labour Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses $ $ $ 20 20 4 6 $936,000 $552,000 9. What would have been the company's variable costing net operating income (loss) if it had produced and sold 47,000 units? Required information [The following information applies to the questions displayed below.] Diego Company manufactures one product that is sold for $81 per unit. The following information pertains to the company's first year of operations in which it produced 52,000 units and sold 47,000 units. Variable costs per unit: Manufacturing: Direct materials Direct labour Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses $ $ $ $ 20 20 4 6 $936,000 $552,000 10. What would have been the company's absorption costing net operating income (loss) if it had produced and sold 47,000 unitsStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started