Question 1:

During its first year of operation Salon Manufacturing Company sold 1,000 units of inventory. Salon incurred variable product cost of $4 per unit and $1,875 of fixed manufacturing overhead costs. The sales price of the products was $6 per unit. Salon uses variable costing. Based on this information Salon will report net income of

Question 2:

During its first year of operation Salon Manufacturing Company sold 1,000 units of inventory. Salon incurred variable product cost of $4 per unit and $1,875 of fixed manufacturing overhead costs. The sales price of the products was $6 per unit. Salon uses absorption costing. Based on this information Salon will report net income of

Question 3:

During its first year of operation, Mazer Manufacturing Company produced 2,000 units of inventory and sold 1,800 units. Mazer incurred variable product cost of $4 per unit and $2,500 of fixed manufacturing overhead costs. The sales price of the products was $6 per unit. If the president of Mazer is rewarded on her ability to produce net income, she will the motivated to use

Question 4:

During its first year of operation Mazer Manufacturing Company produced 2,000 units of inventory and sold 1,800 units. Mazer incurred variable product cost of $4 per unit and $2,500 of fixed manufacturing overhead costs. The sales price of the products was $6 per unit. Determine the amount of net income Mazer would report if the company uses variable costing.

Question 5:

During its first year of operation Mazer Manufacturing Company produced 2,000 units of inventory and sold 1,800 units. Mazer incurred variable product cost of $4 per unit and $2,500 of fixed manufacturing overhead costs. The sales price of the products was $6 per unit. Determine the amount of gross margin Mazer would report if the company uses absorption costing.