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I need help with this Whitman Company has just completed its first year of operations. The company's absorption costing income statement for the year appears
I need help with this
Whitman Company has just completed its first year of operations. The company's absorption costing income statement for the year appears below: Whitman Company Income Statement Sales (39,000 units $44.60 per unit) Cost of goods sold (39,000 units x $24 per unit) $1,739,400 936,000 Gross margin Selling and administrative expenses 803,400 487,500 Net operating income $ 315,900 The company's selling and administrative expenses consist of $292,500 per year in fixed expenses and $5 per unit sold in variable expenses. The $24 per unit product cost given above is computed as follows $12 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($255,000 51,000 units) 4 Absorption costing unit product cost $24 Required 1. Prepare the company's income statement in the contribution format using variable costing Whitman Company Variable Costing Income Statement Variable expenses: Fixed expensesStep by Step Solution
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