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Please help with A, B, and C and show work! hd 9. The Night Ranger Company began operations on January 2, 2000. The company uses
Please help with A, B, and C and show work!
hd 9. The Night Ranger Company began operations on January 2, 2000. The company uses actual costing and carries no Work in Process inventories. Production and sales for the first 4 years are as follows: 2000 2001 40,000 35,000 2003 2002 100,000 80,000 101,000 74,000 Production (in units) Sales (in units) 50,000 52,000 For each of the first 4 years of operations, the variable costs per unit and fixed costs per year were as follows: $2.25 $2.10 $1.50 Fixed overhead per year Variable selling per unit Fixed selling per year $200,000 $1.15 $120,000 Direct materials per unit Direct labor per unit Variable overhead per unit For all for years, the selling price is $16 per unit. The company uses the FIFO method to assign costs to inventories. A. Prepare, in good form, an income statement for the year 2001 using absorption costing. You do not need a heading on your statement, but it should otherwise be in good form. B. Prepare, in good form, an income statement for the year 2003 using variable costing. You do not need a heading on your statement, but it should otherwise be in good form. C. Using cost-volume-profit analysis, compute the level of sales (in units) that would be needed in order for the company to earn an income of $36,150Step by Step Solution
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