SnoPlanks manufactures two specialized types of snowboards made out of bamboo (a fast growing renewable material) - Model A and Model B - which they make at their factory in Bend Oregon. SnoPlanks has provided you with their 2020 Income Statement. During the year they manufactured 700 Model A boards and sold 680 for $850 each and manufactured 300 Model B boards and sold 280 for $1,000 each. Fixed manufacturing costs were $180,000 and variable manufacturing costs $335 for the Model A and $395 for the Model B. Fixed advertising, marketing and administrative expenses were $112,000 with variable shipping costs of $10 per board. SnoPlank has a capacity to produce 1,200 Snowboards with total assets of $400,000 and an expected rate of return of 30%. They expect to sell 1,100 boards in 2021. SnoPlanks Absorption Costing Income Statement for the Financial Year Ending Dec 31, 2020 Sales revenue Cost of goods sold Gross margin Operating costs Variable shipping costs Total operating costs Operating income Fixed selling and administrative SNOPLANKS INFORMATION $858,000 511,200 346,800 9,600 112,000 121,600 $225,200 Ecominded - Sustainable bamboo and a no waste initiative... we love mother earth. Surfwalls - Bamboo sidewalls are factory waxed creating a fast and durable ride. Handcrafted - 100% handmade from start to finish in Bend, Oregon USA. Panda pop core - Bamboo and carbon fiber create a light, strong, responsive core. Truboo Solid bamboo from tip to tail layered with carbon fiber and fiberglass. Even keel - Slight lift toward the edge of the board creates a catch free ride that is unmatched in powder conditions yet extremely stable on hard pack. STRATEGY With every board we strive to be as environmentally sound as possible. Sustainable bamboo, entropy resin, and naturally sourced finishing oils give us both a high-end product and a product that has a smaller carbon footprint. In addition scrap materials are utilized to make skateboards in the summer months in a collaborative effort with legendary shaper and surfer Gerry Lopez. Snoplanks proudly supports Protect Our Winters and gives a portion of every sale back to their organization in order to assist in the efforts to fight global climate change.