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please show your work In 2017, BSA Manufacturing, LLC produce and sold 50,000 units of x in their first year of operation. The following information
please show your work
In 2017, BSA Manufacturing, LLC produce and sold 50,000 units of "x" in their first year of operation. The following information is provided regarding the company's first year in operation. Total Sales (50,000-$80) Units Produced and sold Direct material Direct Labor Variable Overhead Fixed Overhead Selling and Admin: Variable Selling and Admin Fixed Selling and Admin 4,000,000 50,000 35 $Per Unit 10 $ Per Unit 5 $Per Unit 8 $Per Unit 2 $Per Unit 10 $ Per Unit 1. Calculate the product cost per unit for Variable Costing and Absorption Costing 2. Prepare an Income Statement utilizing Variable Costing and Absorption Costing 3. The production managers of BSA Manufacturing, LLC would like to increase the units produced from 50,000 to 80,000 units of "x". This increased inventory is not needed in the current year and could be produced in the following year. The Production manager indicates that this is a quality business decision and it is in the best interest of the business. a. Calculate the new product cost per unit under Variable Costing and Absorption Costing. b. Prepare an income statement utilizing Variable Costing and Absorption Costing assuming 80,000 units were produced and only 50,000 units were sold. Know that BSA manufacturing utilized Absorption Costing. c. Calculate, reconcile and explain the differences in Net Income d. Please explain if the decision to increase production is in the best interest of the company and why Step by Step Solution
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