Marley Company has the following information for March:

Sales 912,000

Variable cost of goods sold 474,000

fixed manufacturing costs 82,000

Variable selling and administrative expenses 238,100

Fixed selling and administrative expenses 54,700

Determine (A) the manufacturing margin,

(B) the contribution margin, and (C) income from operations for Marley Company for the month of March.

Variable manufacturing costs are $126 per unit, and fixed manufacturing costs are $157,500. Sales are estimated to be 10,000 units.

A. How much would absorption costing income from operations differ between a plan to produce 10,000 units and a plan to produce 15,000 units?

B. How much would variable costing income from operations differ between the two production plans?

During the first month of operations ended July 31, YoSan Inc. manufactured 2,400 flat panel televisions, of which 2,000 were sold. Operating data for the month are summarized as follows:

Sales 2,150,000

Manufacturing costs:

Direct materials 960,000

Direct labor 420,000

Variable manufacturing cost 156,000

Fixed manufacturing cost 288,000 1,824,000

Selling and administrative expense:

Variable 204,000

Fixed 96,000 300,000

1. Prepare an income statement based on the absorption costing concept.

2. Prepare an income statement based on the variable costing concept.

3.Explain the reason for the difference in the amount of income from operations reported in 1 and 2.