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please help Stark Enterprises manufactures and sells a single product. The following costs were incurred during the company's first year of operations: Variable costs per
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Stark Enterprises 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 Direct labour Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expense 29 22 6 7 237,150 154,000 During the year, the company produced 26,350 units and sold 22,000 units. The selling price of the company's product is $84 per unit. Required: 1. Assume that the company uses absorption costing. a. Compute the unit product cost. Unit product cost b. Prepare an income statement for the year. (Do not leave any empty spaces: input a 0 wherever it is required.) Absorption Costing Income Statement Cost of goods sold c. If 2.000 more units were produced during the year, the operating income would: O Increase Remain the same O Decrease 2. Assume that the company uses variable costing. a. Compute the unit product cost. Unit product cost b. Prepare an income statement for the year. (Do not leave any empty spaces; input a 0 wherever it is required.) Variable Costing Income Statement Variable expenses Vanable cost of goods sold Variable cost of goods sold Fixed expenses c. If 2,000 more units were produced during the year, the operating income would: Increase O Remain the same O Decrease 3. Compute the Break Even point for the company in units to be sold and sales in dollars Step by Step Solution
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