Help!

oan Keathley has been trying to convince her boss, Jeff Hamilton, to use variable costing for internal reporting purposes. "If we could predict demand better, it wouldn't be an issue," argued Joan. Jeff doesn't think it is worth the extra effort or confusion of maintaining two sets of books. As a last resort, Joan has prepared income statements under five different scenarios of production volume. She believes that if this doesn't convince eff that their current income statements have been misleading, nothing will The following table shows the inventory unit data under five scenarios. Each scenario should be considered independently Scenario B- 70-270 955 1,090 (820) (820) (820) (820) (820) 540 ' 270 2 Beginning inventory 270 270 Production Sales Ending inventory 550 685 820 135 270 405 Joan gathered the following information from the accounting records. Fixed manufacturing costs per unit were determined based on normal production of 820 units per year. The 270 units in beginning inventory are valued at $63.40 Sales price per unit Variable manufacturing costs per unit $21.00 Fixed manufacturing costs per unit 42.40 Total fixed manufacturing costs Total selling expense (all fixed) $ 97.20 $34,768 $ 25,920