Question 1a. Prepare the income statement for fiscal year 2019 in Table 2. Use the information given above and your calculations in Table 1. Selling and administrative expenses are given in Table 2. Assume that the number of units produced equal to the number of units sold. Use comma in the numbers you fill in Table 2. (10 points)

Table 2. Company X Income Statement 2019

Income Statement Year Ended Dec. 31, 2019
	Product A	Product B	Total
Sales
Cost of goods sold
Gross margin
Selling & Admin expenses	780,000	2,640,000	3,420,000
Net profit
Units produced & sold	4,000	22,000
Net Profit per unit sold

Information given above:

Company X is a manufacturing company. It produces two products: Product A and Product B. In fiscal year 2020, 4,000 units of Product A are sold at $1,260 per unit, and 22,000 units of Product B are sold at $900 per unit.

Per unit costs -	Product A	Product B
Direct Materials	$650	$250
Add: Direct Labor I (3.5*$20); (1.5 * $20)	$70	$30
Add: Direct Labor II (4*$30); (8*$30)	$120	$240
Add: Manufacturing overhead (4*$25); (8*$25)	$100	$200
Manufacturing cost per unit	$940	$720

Question 1b. Based on the net profits for each product, the CEO at company X has decided to concentrate the resources on product A and to phase out product B. Based on the calculations in Table 2, in text box below briefly discuss your suggestions.