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Toy Centre Inc. sells Frisbees. In 2020, the company produced 3,072,000 units but sold only 2,527,000 units. The unit selling price was $1.50 per Frisbee.
Toy Centre Inc. sells Frisbees. In 2020, the company produced 3,072,000 units but sold only 2,527,000 units. The unit selling price was $1.50 per Frisbee. The company had no beginning inventory. Costs and expenses for the year ended December 31, 2020 were as follows: $0.48 Variable costs per unit: Direct materials Direct labour Variable manufacturing overhead Variable selling and administrative expenses 0.10 0.20 0.25 Annual fixed costs and expenses: Manufacturing overhead Selling and administrative expenses $430,080 342,000 Prepare an income statement using absorption costing. Prepare an income statement using variable costing. Toy Centre Inc. Income Statement Variable Costing Activate Wind ER VERSION Maplewood Company must decide whether to make or buy some of its components. The costs of producing 59,900 switches for its generators are as follows. BACK NEXT Direct materials Direct labour $31,148 41,331 Variable overhead Fixed overhead $53,311 59,301 Instead of making the switches at an average cost of $3.09 ($185,091 = 59,900), the company has an opportunity to buy the switches at $2.89 per unit. If the company purchases the switches, all the variable costs and one-third of the fixed costs will be eliminated. Prepare an incremental analysis showing whether the company should make or buy the switches. (Round per unit answers to 2 decimal places, e.g. 15.25. If an amount reduces the net income then enter with a negative sign preceding the number e.g. -15,000 or parenthesis, e.g. (15,000).) Per Unit Net Income Increase (Decrease) Make Buy Number of units: $ $ $ $ The company should the components. Per Unit Make Net Income Increase (Decrease) Number of units: Bury $ The company should the components. Would your answer be different if the released productive capacity will generate additional income of $30,6547 If the released capacity can generate additional income of $30,654, then the company should the components
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