Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Splish, Inc., produces amplifiers. Each unit sells for $1,000. Below is information on production/sales and costs for 2016: Production and Sales in Units Production Costs
Splish, Inc., produces amplifiers. Each unit sells for $1,000. Below is information on production/sales and costs for 2016:
Production and Sales in Units | Production Costs | Selling and Admin. Costs | |||||||||||||
January | 104 | $88,000 | $23,400 | ||||||||||||
February | 116 | 97,700 | 25,200 | ||||||||||||
March | 97 | 82,800 | 22,300 | ||||||||||||
April | 105 | 89,900 | 23,800 | ||||||||||||
May | 116 | 96,900 | 25,000 | ||||||||||||
June | 126 | 103,100 | 26,500 | ||||||||||||
July | 127 | 105,300 | 26,800 | ||||||||||||
August | 133 | 107,600 | 27,300 | ||||||||||||
September | 137 | 111,800 | 27,700 | ||||||||||||
October | 125 | 103,400 | 26,300 | ||||||||||||
November | 125 | 101,700 | 26,000 | ||||||||||||
December | 108 | 90,200 | 24,000 | ||||||||||||
Total | 1,419 | $1,178,400 | $304,300 | ||||||||||||
Average cost per unit | $830.44397 | $214.44679 |
|
The company estimates that production and sales in 2017 will be 1,640 units. Based on this estimate, forecast income before taxes for 2017. (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Sales $______________
Less: Selling and admin cost _______________
Less: Production cost ________________
Income $________________
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started