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Tesla, Inc. produces 10,000 units, incurring variable production costs of $5 per unit and fixed production costs of $20,000. Selling price is $15 per unit.
Tesla, Inc. produces 10,000 units, incurring variable production costs of $5 per unit and fixed production costs of $20,000. Selling price is $15 per unit. Prepare income statements under variable and absorption costing.
Cost Component | Variable Costing | Absorption Costing |
Revenue | ||
Variable Production | ||
Fixed Production | ||
Total Costs | ||
Net Income |
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