Solve for C

$2880 and $62880 are INCORRECT answers

Variable and Absorption Costing Summarized data for 2016 (the first year of operations) for Gorman Products, Inc., are as follows: Sales (75,000 units) $9,000,000 Production costs (80,000 units) Direct material 2,640,000 Direct labor 2,160,000 Manufacturing overhead: Variable 1,632,000 Fixed 960,000 Operating expenses: Variable 504,000 Fixed 720,000 Depreciation on equipment 180,000 Real estate taxes 54,000 Personal property taxes (inventory & equipment) 86,400 Personnel department expenses 90,000 a. Prepare an income statement based on full absorption costing. Only use a negative sign with your answer for net income (loss), if the answer represents a net loss. Otherwise, do not use negative signs with any answers. Round answers to the nearest whole number, when applicable. Absorption Costing Income Statement Sales 9,000,000 Cost of Goods Sold: Beginning Inventory $ 0 Direct materials 2,640,000 Direct labor 2,160,000 Manufacturing overhead 2,592,000 Less: Ending Inventory 462,000 Cost of Goods Sold 6,930,000 Gross profit 2,070,000 Operating expenses 1.224,000 Net Income (Loss) $ 846,000 b. Prepare an income statement based on variable costing. Only use a negative sign with your answer for net income (loss), if the answer represents a net loss. Otherwise, do not use negative signs with any answers. Round answers to the nearest whole number, when applicable. Variable Costing Income Statement Sales 9,000,000 Variable cost of Goods Sold: Beginning Inventory 0 Direct materials 2,640,000 Direct labor 2,160,000 Variable manufacturing overhead 1,632,000 Less: Ending Inventory 402,000 Variable cost of goods sold 6,030,000 Variable operating expenses 504,000 Contribution margin 2,466,000 Fixed costs: Manufacturing overhead 960,000 Operating expenses 720,000 Total Fixed Cost 1,680,000 Net Income (Loss) $ 786,000 C. Assume that you must decide quickly whether to accept a special one-time order for 1,000 units for $90 per unit. Which income statement presents the most relevant data? variable costing Determine the apparent profit or loss on the special order based solely on these data. Use a negative sign with your answer if the special order creates an apparent loss. Round answer to the nearest whole number. $ 62,880 x