Tesla, Inc. provides the following data for the production and sale of 5,000 electric cars: Sales: $200,000
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Question:
Tesla, Inc. provides the following data for the production and sale of 5,000 electric cars:
•Sales: $200,000
•Variable costs: Direct materials $60,000, Direct labor $50,000, Variable overhead $30,000, Variable selling expenses $10,000
•Fixed costs: Fixed manufacturing overhead $40,000, Fixed selling and administrative expenses $20,000
Required:
1.Prepare an income statement using variable costing.
2.Calculate the contribution margin and operating income.
3.Discuss the advantages of variable costing for internal decision-making.
Related Book For
Accounting
ISBN: 978-0324662962
23rd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
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