Last month when Holiday Creations, Incorporated, sold 50,000 units, its sales, variable expenses, and fixed expenses were $200,000, $120,000, and $65,000, respectively. Required: 1. What is the company's contribution margin (CM) ratio? 2. What is the company's variable expense ratio? 1. Contribution margin ratio % 2. Variable expense ratio % Required 1 Required 2 Prepare an income statement for last year using variable costing. Piedmont Company segments its business into two regionsNorth and South. The company prepared the contribution format segmented income statement as shown: Total Company North South Sales $ 675,666 $ 456,666 $ 225,666 Variable expenses 495,999 315,999 99,999 Contribution margin 276,666 135,669 135,666 Traceable 'Fixed expenses 159,999 75,999 75,999 Segment margin 126,999 $ 59,999 $ 69.999 Common 'Fixed expenses 65,666 Net operating income :3 55,666 Required: 1. Compute the companywide break-even point in dollar sales. 2. Compute the break-even point in dollar sales for the North region. 3. Compute the break-even point in dollar sales for the South region. Note: For all requirements, round your intermediate calculations to 2 decimal places. Round your final answers to the nearest dollar. 1. Dollar sales for company to break even 2. Dollar sales for North segment to break even 3. Dollar sales for South segment to break even Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations: Variable costs per unit: Manufacturing: Direct materials $ 15 Direct labor $ 5 Variable manufacturing overhead $ 1 Variable selling and administrative $ 1 Fixed costs per year: Fixed manufacturing overhead $ 286,666 Fixed selling and administrative $ 196,666 During the year, the company produced 26,000 units and sold 22,000 units. The selling price of the company's product is $46 per unit. Required: 1. Assume the company uses absorption costing: a. Compute the unit product cost. b. Prepare an income statement for the year. 2. Assume the company uses variable costing: a. Compute the unit product cost. b. Prepare an income statement for the year. Required: 1. Assume the company uses absorption costing: a. Compute the unit product cost. b. Prepare an income statement for the year. 2. Assume the company uses variable costing: a. Compute the unit product cost. b. Prepare an income statement for the year. Complete this question by entering your answers in the tabs below. Req 1A Req lB Req 2A Req ZB Compute the unit product cost. Assume the company uses absorption costing. _:| Required: 1. Assume the company uses absorption costing: a. Compute the unit product cost. Is. Prepare an income statement for the year. 2. Assume the company uses variable costing: a. Compute the unit product cost. Is. Prepare an income statement for the year. Complete this question by entering your answers in the tabs below. Req 1A Req iB Req 2A Req 2B Prepare an income statement for the year. Assume the company uses absorption costing. Required: 1. Assume the company uses absorption costing: a. Compute the unit product cost. b. Prepare an income statement for the year. 2. Assume the company uses variable costing: a. Compute the unit product cost. b. Prepare an income statement for the year. Complete this question by entering your answers in the tabs below. Req 1A Req lB Req 2A Req ZB Compute the unit product cost. Assume the company uses variable costing _:| Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2A Req 2B Prepare an income statement for the year. Assume the company uses variable costing Lynch Company Variable Costing Income StatementWalsh Company manufactures and sells one product. The following information pertains to each of the company's first two years of operations: Variable costs per unit: Manufacturing: Direct materials $ 25 Direct labor $ 17 Variable manufacturing overhead $ 6 Variable selling and administrative $ 5 Fixed costs per year: Fixed manufacturing overhead $ 400,000 Fixed selling and administrative expenses $ 80, 000 During its first year of operations, Walsh produced 50,000 units and sold 40,000 units. During its second year of operations, it produced 40,000 units and sold 50,000 units. The selling price of the company's product is $51 per unit. Required: 1. Assume the company uses variable costing: a. Compute the unit product cost for Year 1 and Year 2. b. Prepare an income statement for Year 1 and Year 2. 2. Assume the company uses absorption costing: a. Compute the unit product cost for Year 1 and Year 2. b. Prepare an income statement for Year 1 and Year 2. 3. Reconcile the difference between variable costing and absorption costing net operating income in Year 1. Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2A Req 2B Req 3Required: 1. Assume the company uses variable costing: a. Compute the unit product cost for Year1 and Year 2. b. Prepare an income statement for Year1 and Year 2. 2. Assume the company uses absorption costing: a. Compute the unit product cost for Year1 and Year 2. b. Prepare an income statement for Year1 and Year 2. 3. Reconcile the difference between variable costing and absorption costing net operating income in Year 1. Complete this question by entering your answers in the tabs below. Req 1A Req iB Req 2A Req 2B Req 3 Assume the company uses variable costing. Compute the unit product cost for year 1 and year 2. Unit product oost Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2A Req 2B Req 3 Assume the company uses variable costing. Prepare an income statement for Year 1 and Year 2. Walsh Company Income Statement Year 1 Year 2 Net operating income (loss)Req uired information [The following information applies to the questions displayed below] unns Variable costs per unit: Manufacturing: Direct materials $ 24 Direct labor $ 16 Variable manufacturing overhead $ 2 Variable selling and administrative $ 3 Fixed costs per year: Fixed manufacturing overhead 3 784,860 Fixed selling and administrative expense $ 672,800 Diego Company manufactures one product that is sold for $73 per unit in two geographic regionsEast and West. The following information pertains to the company's first year of operations in which it produced 56,000 units and sold 51,000 The company sold 38,000 units in the East region and 13,000 units in the West region. It determined $300,000 of its fixed selling and administrative expense is traceable to the West region, $250,000 is traceable to the East region, and the remaining $122,000 is a common fixed expense. The company will continue to incur the total amount of its fixed manufacturing overhead costs as long as it continues to produce any amount of its only product. 3. What is the company's total contribution margin under variable costing? Required: 1. Assume the company uses variable costing: a. Compute the unit product cost for Year'l and Year 2. b. Prepare an income statement for Year'l and Year 2. 2. Assume the company uses absorption costing: a. Compute the unit product cost for Year'l and Year 2. b. Prepare an income statement for Year'l and Year 2. 3. Reconcile the difference between variable costing and absorption costing net operating income in Year 1. Complete this question by entering your answers in the tabs below. Req 1A Req lB Req 2A Req 2B Req 3 Assume the company uses absorption costing. Compute the unit product cost for Year 1 and Year 2. Note: Round your answer to 2 decimal places. Unit product oost Required: 1. Assume the company uses variable costing: a. Compute the unit product cost for Year 1 and Year 2. b. Prepare an income statement for Year 1 and Year 2. 2. Assume the company uses absorption costing: a. Compute the unit product cost for Year 1 and Year 2. b. Prepare an income statement for Year 1 and Year 2. 3. Reconcile the difference between variable costing and absorption costing net operating income in Year 1. Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2A Req 2B Req 3 Assume the company uses absorption costing. Prepare an income statement for Year 1 and Year 2. Note: Round your intermediate calculations to 2 decimal places. Walsh Company Income Statement Year 1 Year 2 Net operating income (loss)Required: 1. Assume the company uses variable costing: a. Compute the unit product cost for Year1 and Year 2. b. Prepare an income statement for Year'l and Year 2. 2. Assume the company uses absorption costing: a. Compute the unit product cost for Year1 and Year 2. b. Prepare an income statement for Year'l and Year 2. 3. Reconcile the difference between variable costing and absorption costing net operating income in Year '|. Complete this question by entering your answers in the tabs below. Req 1A Req 15 Req 2A Req 23 Req 3 Reconcile the difference between variable costing and absorption costing net operating income in Year 1. Note: Enter any losses or deductions as a negative value. Variable costing net operating income (loss) Add (deduct) xed manufacturing overhead deferred in (released from) inventory under absorption costing Absorption costing not operating income (loss) Req uired information [The following information applies to the questions displayed below] Diego Company manufactures one product that is sold for $73 per unit in two geographic regionsEast and West. The following information pertains to the company's first year of operations in which it produced 56,000 units and sold 51,000 UHHS Variable costs per unit: Manufacturing: Direct materials $ Direct labor $ Variable manufacturing overhead $ Variable selling and administrative $ Fixed costs per year: Fixed manufacturing overhead $ 784,906 Fixed selling and administrative expense S 672,906 The company sold 38,000 units in the East region and 13,000 units in the West region. It determined $300,000 of its fixed selling and administrative expense is traceable to the West region, $250,000 is traceable to the East region, and the remaining $122,000 is a common fixed expense. The company will continue to incur the total amount of its fixed manufacturing overhead costs as long as it continues to produce any amount of its only product. 4. What is the company's net operating income (loss) under variable costing? ::l Required information [The foiiowing information applies to the questions displayed beiowj Diego Company manufactures one product that is sold for $73 per unit in two geographic regionsEast and West. The following information pertains to the company's first year of operations in which it produced 56,000 units and sold 51,000 units. Variable costs per unit: Manufacturing: Direct materials $ 24 Direct labor $ 15 Variable manufacturing overhead $ 2 Variable selling and administrative $ 3 Fixed costs per year: Fixed manufacturing overhead 5 784,860 Fixed selling and administrative expense $ 672,960 The company sold 38,000 units in the East region and 13,000 units in the West region. It determined $300,000 of its fixed selling and administrative expense is traceable to the West region, $250,000 is traceable to the East region, and the remaining $122,000 is a common fixed expense. The company will continue to incur the total amount of its fixed manufacturing overhead costs as long as it continues to produce any amount of its only product. 5. What is the company's total gross margin under absorption costing? _:] Req uired information [The following information applies to the questions displayed below] Diego Company manufactures one product that is sold for $73 per unit in two geographic regionsEast and West. The following information pertains to the company's first year of operations in which it produced 56,000 units and sold 51,000 UHHS Variable costs per unit: Manufacturing: Direct materials $ 24 Direct labor $ 16 Variable manufacturing overhead $ 2 Variable selling and administrative $ 3 Fixed costs per year: Fixed manufacturing overhead $ 784,906 Fixed selling and administrative expense S 672,966 The company sold 38,000 units in the East region and 13,000 units in the West region. It determined $300,000 of its fixed selling and administrative expense is traceable to the West region, $250,000 is traceable to the East region, and the remaining $122,000 is a common fixed expense. The company will continue to incur the total amount of its fixed manufacturing overhead costs as long as it continues to produce any amount of its only product. 6. What is the company's net operating income (loss) under absorption costing? :l:l Diego Company manufactures one product that is sold for $73 per unit in two geographic regionsEast and West. The following information pertains to the company's first year of operations in which it produced 56,000 units and sold 51,000 units. Variable costs per unit: Manufacturing: Direct materials $ 24 Direct labor $ 15 Variable manufacturing overhead $ 2 Variable selling and administrative $ 3 Fixed costs per year: Fixed manufacturing overhead $ 784,668 Fixed selling and administrative expense $ 672,599 The company sold 38,000 units in the East region and 13,000 units in the West region. It determined $300,000 of its xed selling and administrative expense is traceable to the West region, $250,000 is traceable to the East region, and the remaining $122,000 is a common fixed expense. The company will continue to incur the total amount of its fixed manufacturing overhead costs as long as it continues to produce any amount of its only product. 13. Prepare a contribution format segmented income statement that includes a Total column and columns for the East and West regions. |da Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $745. Selected data for the company's operations last year follow: Units in beginning inventory 6 Units produced 23,666 Units sold 19,666 Units in ending inventory 4,666 Variable costs per unit: Direct materials $ 156 Direct labor $ 356 Variable manufacturing overhead $ 65 Variable selling and administrative $ 21 Fixed costs: Fixed manufacturing overhead $ 926,666 Fixed selling and administrative $ 676,666 Required: 1. Assume the company uses absorption costing. Compute the unit product cost for one gamelan. Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. 2. Assume the company uses variable costing. Compute the unit product cost for one gamelan. 1. Absorption costing unit product cost 2. Variable costing unit product cost lda Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $910. Selected data for the company's operations last year follow: Units in beginning inventory 6 Units produced 316 Units sold 286 Units in ending inventory 36 Variable costs per unit: Direct materials $ 136 Direct labor $ 356 Variable manufacturing overhead $ 56 Variable selling and administrative $ 46 Fixed costs: Fixed manufacturing overhead $ 62,666 Fixed selling and administrative $ 26,666 The absorption costing income statement prepared by the company's accountant for last year appears below: Sales $ 254,866 Cost oF goods sold 264,466 Gross margin 56,466 Selling and administrative expense 37,266 Net operating income $ 13,266 Required: 1. Under absorption costing, how much fixed manufacturing overhead cost is included in the company's inventory at the end of last year? 2. Prepare an income statement for last year using variable costing. Required: 1. Under absorption costing, how much fixed manufacturing overhead cost is included in the company's inventory at the end of last year? 2. Prepare an income statement for last year using variable costing. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Under absorption costing, how much xed manufacturing overhead cost is included in the company's inventory at the end of last year