The company "Accesorios Industriales, S.A.", is dedicated to the manufacture of only one type of workers' boots. Below are the production costs of each boot pair, as well as additional information to obtain a statement of results with the direct costing method for 2009

At the beginning of the period, 1200 pairs of boots existed in the store. The sales of the year will be 3000 pairs. Direct labor must be considered as a fixed cost. The company sells 40% margin with respect to its production cost (for each pair of boots). The normal capacity is 2800 pairs. Sales and administration expenses are $ 160000 (25% are variable). They were produced in the year 2600 pairs.

leather threads nails 60.00 1 2 2 15 30 20 glue plastic Direct labor Other variable costs Other fix costs 50 Production costs 180 N leather threads nails 60.00 1 2 2 15 30 20 glue plastic Direct labor Other variable costs Other fix costs 50 Production costs 180 N