Logan Industries Inc. Income Statement-Solvent For the Month Ended September 30 1 Sales (10,000 units) $800,000.00 2 Cost of goods sold (770,000.00) 3 Gross profit $30,000.00 4 Selling and administrative expenses (100,000.00) 5 Operating loss $(70,000.00) Instructions The production costs and selling and administrative expenses, based on production of 10,000 units in September, are as follows: Direct materials $35 per unit Direct labor 24 per unit 8 per unit Variable manufacturing cost Variable selling and administrative expenses Fixed manufacturing cost Fixed selling and administrative expenses 6 per unit $100,000 for September 40,000 for September Sales for October are expected to drop about 40% below those of September. No significant changes are anticipated in the fixed costs or variable costs per unit. No extra costs will be incurred in discontinuing operations in the portion of the plant associated with solvent. The inventory of solvent at the beginning and end of October is not expected to be significant (material Logan Industries Inc. Estimated Income Statement-Absorption Costing-Solvent (Label) 1 2 (Label) 3 4 5 6 7 8 9 (Label) 10 11 12 13 Logan Industries Inc. Estimated Income Statement-Variable Costing-Solvent (Label) 1 2 (Label) 3 4 5 6 7 8 9 10 (Label) 11 12 13 14