Tutor, Please help me with the follow below. Thank you so much Dear.

Case Study 3 Donna Tse has recently accepted the position of assistant manager at Cycle World, a bicycle store in St. Louis. She has just finished her accounting courses. Cycle World's manager and owner, Jeff Towry, asks Tse to prepare a budgeted income statement for 2017 based on the information he has collected. Tse's budget follows: Tse does not want to give Towry this budget without making constructive suggestions for steps Towry could take to improve expected performance. Assume the role of Donna Tse. Write a memo to Towry outlining your suggestions. E21-13 Computing absorption costing operating income Learning Objectives 1, 2 1. $171.50 Refer to the information for Organic, Inc. Requirements 1. Using absorption costing, calculate the unit product cost. 2. Prepare an income statement using the traditional format. E21-14 Computing variable costing operating income Learning Objectives 1, 2 2. CM $29,400 Refer to the information for Organic, Inc. Requirements 1. Using variable costing, calculate the unit product cost. 2. Prepare an income statement using the contribution margin format. E21-15 Preparing variable costing income statements, production exceeds sales Learning Objectives 1, 2 2. FG $30,000 RefreshAde produced 15,000 cases of powdered drink mix and sold 12,000 cases in April 2016. The sales price was $30, variable costs were $13 per case ($10 manufacturing and $3 selling and administrative), and total fixed costs were $70,000 ($45,000 manufacturing overhead and $25,000 selling and administrative). The company had no beginning Finished Goods Inventory. Requirements 1. Prepare the April income statement using variable costing. 2. Determine the product cost per unit and the total cost of the 3,000 cases in Finished Goods Inventory as of April 30. Note: Exercise E21-15 must be completed before attempting Exercise E2116. E21-16 Preparing absorption costing income statements, production exceeds sales Learning Objectives 1, 2 1. OI $143,000 Refer to Exercise E21-15. Requirements 1. Prepare the April income statement using absorption costing. 2. Determine the product cost per unit and the total cost of the 3,000 cases in Finished Goods Inventory as of April 30. 3. Is the April 30 balance in Finished Goods Inventory higher or lower than variable costing? Explain why. Note: Exercises E21-15 and E21-16 must be completed before attempting Exercise E21-17. E21-17 Comparing variable and absorption costing Learning Objectives 1, 2 Refer to Exercises E21-15 and E21-16. Requirements 1. Which costing method produces the highest operating income? Explain why. 2. Which costing method produces the highest April 30 balance in Finished Goods Inventory? Explain why. Note: Exercise E21-15 must be completed before attempting Exercise E2118. E21-18 Preparing variable costing income statements, production less than sales Learning Objectives 1, 2 1. CM $391,000 Refer to your answers to Exercise E21-15. In May 2016, RefreshAde produced 20,000 cases of powdered drink mix and sold 23,000 cases, of which 3,000 were produced in April. The sales price was $30, variable costs were $13 per case ($10 manufacturing and $3 selling and administrative), and total fixed costs were $70,000 ($45,000 manufacturing and $25,000 selling and administrative). Requirements 1. Prepare the May income statement using variable costing. 2. Determine the balance in Finished Goods Inventory as of May 31. Note: Exercise E21-18 must be completed before attempting Exercise E2119. E21-19 Preparing absorption costing income statements, production exceeds sales Learning Objectives 1, 2 1. OI $312,000 Refer to Exercise E21-18. Requirements 1. Prepare the May income statement using absorption costing. 2. Is operating income using absorption costing higher or lower than variable costing income? Explain why. 3. Determine the balance in Finished Goods Inventory as of May 31. Use the following information for Exercises E21-13 and E21-14. Organic, Inc. has collected the following data for November (there are no beginning inventories): Units produced and sold 300 units Sales price $ 275 per unit Direct materials 53 per unit Direct labor 76 per unit Variable manufacturing overhead 28 per unit Fixed manufacturing overhead 4,350 per month Variable selling and administrative costs 20 per unit Fixed selling and administrative costs 4,675 per month FINANCIAL AND MANAGERIAL ACCOUNTING - Fifth Edition E21-13 Requirements 1. Using absorption costing, calculate the unit product cost. 2. Prepare an income statement using the traditional format. Solution: Requirement 1 Direct materials Direct Labor Variable manufacturing overhead Fixed manufacturing overhead (xx / 300 units) Total unit product cost Absorption Costing xx xx xx xx $xx Requirement 2 ORGANIC, INC. Income Statement For the Month Ending November 30 Sales Revenue (xx per unit * 300 units) Cost of Goods Sold (xx per unit * 300 units) Gross Profit Selling & Adminstrative Costs ((xx per unit/300 units) + xx) Operating Income Chapter 21: Variable Costing xx xx xx xx $xx Page 1 of 11 FINANCIAL AND MANAGERIAL ACCOUNTING - Fifth Edition E21-14 Requirements 1. Using variable costing, calculate the unit product cost. 2. Prepare an income statement using the contribution margin format. Solution: Requirement 1 Direct Materials Direct Labor Variable Manufacturing Overhead Total Unit Product Cost Variable Costing xx xx xx $ xx Requirement 2 ORGANIC, INC. Contribution Margin Income Statement For the Month Ending November 30 Sales Revenue (xx per unit * 300 units) Variable Costs: Manufacturing (xx per unit * 300 units) xx Selling & Administrative (xx per unit * 300 unit xx Contribution Margin Fixed Costs: Manufacturing Overhead xx Selling & Administrative xx Operating Income Chapter 21: Variable Costing xx xx xx xx xx Page 2 of 11 FINANCIAL AND MANAGERIAL ACCOUNTING - Fifth Edition Requirements 1. Prepare the April income statement using variable costing. 2. Determine the product cost per unit and the total cost of the 3,000 cases in Finished Goods Inventory as of April 30. Requirement 1 REFRESHADE Contribution Margin Income Statement For the Month Ending April 30, 2016 Sales Revenue (xx per case * 12000 cases) Variable Costs: Manufacturing (xx per case * 12000 cases) xx Selling & Administratvie (xx per case* 12000 cases) xx Contribution Margin Fixed Costs: Manufacturing Overhead xx Selling & Administrative xx Operating Income xx xx xx xx xx Requirement 2 Unit cost = Variable manufacturing costs = $10 Finished Goods Inventory = xx cases * 10 per case = xx Chapter 21: Variable Costing Page 3 of 11 FINANCIAL AND MANAGERIAL ACCOUNTING - Fifth Edition Requirements 1. Prepare the April income statement using absorption costing. 2. Determine the product cost per unit and the total cost of the 3,000 cases in Finished Goods Inventory as of April 30. 3. Is the April 30 balance in Finished Goods Inventory higher or lower than variable costing? Explain why. Requirement 1 REFRESHADE Income Statement For the Month Ending April 30, 2016 Sales Revenue (xx per case * 12000 cases) Cost of Goods Sold: Variable (xx per case * 12000 cases) xx Fixed ( xx * 12000/xx)** xx Gross Profit Selling & Administrative Costs: Variable xx Fixed xx Operating Income xx xx xx xx xx ** Fixed Manufacturing costs allocated to COGS: 12000 cases sold out of 15000 cases produced. Requirement 2 Variable manufacturing costs Fixed manufacturing overhead ( xx/15000 units) Total unit product cost Absorption Costing xx xx xx Finished Goods inventory = 3000 cases * xx per case = $xx Chapter 21: Variable Costing Page 4 of 11 FINANCIAL AND MANAGERIAL ACCOUNTING - Fifth Edition Requirement 3 Chapter 21: Variable Costing Page 5 of 11 FINANCIAL AND MANAGERIAL ACCOUNTING - Fifth Edition 15000 cases Chapter 21: Variable Costing Page 6 of 11 FINANCIAL AND MANAGERIAL ACCOUNTING - Fifth Edition Chapter 21: Variable Costing Page 7 of 11 FINANCIAL AND MANAGERIAL ACCOUNTING - Fifth Edition E21-17 Requirements 1. Which costing method produces the highest operating income? Explain why. 2. Which costing method produces the highest April 30 balance in Finished Goods Inventory? Explain why. Solution: Requirement 1 Requirement 2 Chapter 21: Variable Costing Page 8 of 11 FINANCIAL AND MANAGERIAL ACCOUNTING - Fifth Edition E21-18 Requirements 1. Prepare the May income statement using variable costing. 2. Determine the balance in Finished Goods Inventory as of May 31. Solution: Requirement 1 REFRESHADE Income Statement For the Month Ending May 31, 2016 Sales Revenue (xx per unit * 23000 units) Varialbe Costs: Manufacturing (xx per unit * 23000 units) xx Selling & Administrative (xx per unit * 23000 units) xx Contribution Margin Fixed Costs: Manufacturing Overhead xx Selling & Administrative xx Operating Income xx xx xx xx xx Requirement 2 The finished goods invetory as of May 31, 2016 is $0 Beginning balance + Units produced - Units Sold = Ending Balance xx + xx - xx = what Chapter 21: Variable Costing Page 9 of 11 FINANCIAL AND MANAGERIAL ACCOUNTING - Fifth Edition E21-19 Requirements 1. Prepare the May income statement using absorption costing. 2. Is operating income using absorption costing higher or lower than variable costing income? Explain why. 3. Determine the balance in Finished Goods Inventory as of May 31. Solution: Requirement 1 REFRESHADE Income Statement For the Month Ending May 31, 2016 Sales Revenue (xx/unit * 23000 units) Cost of Goods Sold: Variable (xx per unit * 23000 units) xx Fixed ((45000 + (45000 * xx/xx)) xx Gross Profit Selling & Administrative Costs: Variable (x * 23000 units) xx Fixed xx Operating Income xx xx xx xx xx Requirement 2 Chapter 21: Variable Costing Page 10 of 11 FINANCIAL AND MANAGERIAL ACCOUNTING - Fifth Edition Requirement 3 Chapter 21: Variable Costing Page 11 of 11