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Hazer Chemical produces and sells an ice-melting granular used on roadways and sidewalks in winter, It annually produces and selis 4,000 tons of its granufer.

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Hazer Chemical produces and sells an ice-melting granular used on roadways and sidewalks in winter, It annually produces and selis 4,000 tons of its granufer. Beceuse of this year's mild winter, projected demand for its product is only 19,200 tons. Based on projected production and sales of 19,200 tons, the company estimates the following income using absorption costing. Its product cost per ton follows and consists mainly of fixed overhead because its automated production process uses expensive equipment. Selling and administrative expenses consist of variable selling and administrative expenses of $6 per ton and fixed selling and administrative expenses of $212,800 per year. The company's presidem will not earn a bonus unless a positive income is teported The controlier mentions that because the company has large storege copacity, it can report a positive income by setting production at the usual 24,000 ton level even though it expects to sell only 19,200 tons. The president is surprised that the company can foport income by producing more without increasing soles. Required: 1. Prepare an income statement using absorption costing based on production of 24,000 tons and sales of 19,200 tons. Can the company report a positive income by increasing production to 24,000 tons and storing the 4,800 tons of excess production in inventory? 2. By how much does income increase by when producing 24,000 tons and storing 4,800 tons in inventory compared to only producing 19.200 tans? Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. Prepare an income statement using absorption costing based on production of 24,000 tons and sales of 19,200 tons. Can the company report a positive income by increasing production to 24,000 tons and storing the 4,800 tons of excess production in inventory? (Round your answers to the nearest whole dollar.) Complete this question by entering your answers in the tabs below. By how much does income increase by when producing 24,000 tons and storing 4,800 tons in inventory compared to only producing 19,200 tons

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