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Please answer all questions!!!!!!! The table is the form to answer requirement 1! Hope it can help you to finish it! Tammy Cat Tree Co.
Please answer all questions!!!!!!! The table is the form to answer requirement 1! Hope it can help you to finish it!
Tammy Cat Tree Co. TCTC) builds luxury cattrees and sells them through the Internet to cat owners who want to provide their cats with a more natural environment. At the start of 2015, TCTC carried no inventory. During the year, it produced 1,800 cat trees and sold 1,400 cat trees for $315 each. Fixed production costs were $162,000 and variable production costs were S70 per cat tree. Fixed advertising, website, and other general and administrative expenses were S75,000 and variable shipping costs were S30 pertree, Required 1.Prepare an operating income statement assuming TCTC uses: a. Variable costing. b. Absorption costing. 2. Compute the breakeven point in units assuming TCTC uses: a. Variable costing. b. Absorption costing. 3. Due to recent changes in local conservation laws, the price of the wood used in the cat trees is expected to increase by $35 for each tree. What effect would this have on the breakeven points calculated above? 4 Using the original data in the problem and the breakeven/targetincome formulas, show that it would be necessary to sell 1,400 cat trees to earn the income calculated in requirements la and 1b aboveStep by Step Solution
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