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Novak Manufacturing produces towels to be sold as souvenirs at sporting events throughout the world. Assume that units produced equalled units sold in 2022. The
Novak Manufacturing produces towels to be sold as souvenirs at sporting events throughout the world. Assume that units produced equalled units sold in 2022. The company's variable-costing income statement and other data are as follows: NOVAKMANUFACTURING Income Statement Year Ended December 31, 2022 Variable Costing Sales (269,900 units) $580,285 Variable cost of goods sold $269,900 Variable selling expenses 21,592 Variable administrative expenses 32,388 323,880 Contribution margin 256,405 Fixed manufacturing overhead 94,465 Fixed selling expenses 37,500 Fixed administrative expenses 42,800 174,765 Net income $81,640 Unit selling price $2.15 Variable costs per unit Direct materials 0.20 Direct labour 0.40 Variable overhead 0.40 Variable selling expenses 0.08 Variable administrative expenses 0.12Prepare an absorption-costing income statement for Novak Manufacturing. (Round per unit calculations to 2 decimal places, e.g. 15.25 and final answers to O decimal places, e.g. 125.)
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