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T Add Category Insert Table Chart Text Shape Media Comment Problem 1 Problem 2 Problem 3 Problem 4 Problem 5 View + | 125%
T Add Category Insert Table Chart Text Shape Media Comment Problem 1 Problem 2 Problem 3 Problem 4 Problem 5 View + | 125% Zoom Question 2 10 Marks 26 Minutes Big Pros Inc. calculates income under absorption costing. The company provides bonuses to managers based on the operating income of the division. In 2021, the Body division has the following financial results: Sales (50,000 units) $ 6,000,000 Cost of Goods Sold Opening Inventory $ Cost of Goods Manufactured (60,000 units) Variable Costs $ 1,500,000 Fixed Costs $ 1,500,000 $ 3,000,000 Ending Inventory -$ 500,000 COGS $ 2,500,000 Gross Margin $ 3,500,000 Selling and Admin Expenses Variable Fixed $ 500,000 $ 800,000 Operating Income 1,300,000 2,200,000 $ $ The old manager for the Body division left in early 2021. A new manager was hired in 2022. The new manager produced 55,000 units and sold 58,000 units in 2022. REQUIRED A) Calculate the operating income for 2022 using absorption costing. Use an income statement to show your work. B) Calculate the operating income for 2022 using variable costing. Do not use an income statement as part of your calculation. Your Response Collaborate Format Organize Nothing selected. Select an object to format.
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