The vice-president, sales of Coronado Corporation has recieved the following income statement for November, which was prepared on a variable -costing basis. The firm has just adopted variable costing for tis internal reporting.

1. The unit sales price for November averaged $36. 2. The unit manufacturing costs for the month were as follows: \begin{tabular}{lr} Variable costs & $18 \\ Fixed costs applied & 4 \\ Total cost & $22 \\ \hline \end{tabular} 3. The unit rate for fixed manufacturing costs is a predetermined rate based on a monthly production of 150,000 units. 4. The variable costs per unit have been stable all year. 5. Production for November was 44,700 units in excess of sales. 6. The inventory at November 30 was 84,800 units. (a) The vice-president, sales is not comfortable with the variable-costing system and wonders what the net income would have been under the previous absorption-costing system. 1. Present the November income statement on an absorption-costing basis. 1. The unit sales price for November averaged $36. 2. The unit manufacturing costs for the month were as follows: \begin{tabular}{lr} Variable costs & $18 \\ Fixed costs applied & 4 \\ Total cost & $22 \\ \hline \end{tabular} 3. The unit rate for fixed manufacturing costs is a predetermined rate based on a monthly production of 150,000 units. 4. The variable costs per unit have been stable all year. 5. Production for November was 44,700 units in excess of sales. 6. The inventory at November 30 was 84,800 units. (a) The vice-president, sales is not comfortable with the variable-costing system and wonders what the net income would have been under the previous absorption-costing system. 1. Present the November income statement on an absorption-costing basis