Pronghorn, Inc. is a company that manufactures and sells a single product. Unit sales for each of the four quarters of 2020 are projected as follows.

Quarter		Units
First		73,600
Second		138,000
Third		506,000
Fourth		110,400
Annual total		828,000

Pronghorn incurs variable manufacturing costs of $0.30 per unit and variable nonmanufacturing costs of $0.35 per unit. Pronghorn will incur fixed manufacturing costs of $662,400 and fixed nonmanufacturing costs of $993,600. Pronghorn will sell its product for $4 per unit.

(a)

Determine the amount of net income Pronghorn will report in each of the four quarters of 2020, assuming actual sales are as projected and employing the integral approach to interim financial reporting. (Ignore income taxes.) Repeat the analysis under the discrete approach. (Round answers to 0 decimal places, e.g. 5,125.)

		1st Quarter		2nd Quarter		3rd Quarter		4th Quarter
Net income (Integral Approach)		$		$		$		$
Net income (Discrete Approach)		$

Compute Pronghorns profit margin on sales for each of the four quarters of 2020 under both the integral and discrete approaches. (Round answers to 1 decimal place, e.g. 52.5%.)

		Profit margin on sales
		1st Quarter		2nd Quarter		3rd Quarter		4th Quarter
Integral approach		%		%		%		%
Discrete approach		%		%