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Estimated Income Statements, using Absorption and Variable Costing Prior to the first month of operations ending October 31 Marshall Inc. estimated the following operating results:
Estimated Income Statements, using Absorption and Variable Costing Prior to the first month of operations ending October 31 Marshall Inc. estimated the following operating results: Sales (28,800 x $101) Manufacturing costs (28,800 units): $2,908,800 Direct materials Direct labor Variable factory overhead Fixed factory overhead Fixed selling and administrative expenses Variable selling and administrative expenses 1,751,040 414,720 192,960 230,400 62,700 75,800 The company is evaluating a proposal to manufacture 32,000 units instead of 28,800 units, thus creating an Inventory, October 31 of 3,200 units Manufacturing the additional units will not change sales, unit variable factory overhead costs, total fixed factory overhead cost, or total selling and administrative expenses
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