U10-3

Marigold, Inc. is a company that manufactures and sells a single product. Unit sales for each of the four quarters of 2020 are projected as follows.

Quarter		Units
First		94,400
Second		177,000
Third		649,000
Fourth		141,600
Annual total		1,062,000

Marigold incurs variable manufacturing costs of $0.40 per unit and variable nonmanufacturing costs of $0.40 per unit. Marigold will incur fixed manufacturing costs of $849,600 and fixed nonmanufacturing costs of $1,274,400. Marigold will sell its product for $4 per unit.

Determine the amount of net income Marigold will report in each of the four quarters of 2020, assuming actual sales are as projected and employing the integral approach to interim financial reporting. (Ignore income taxes.) Repeat the analysis under the discrete approach. (Round answers to 0 decimal places, e.g. 5,125.)

		1st Quarter		2nd Quarter		3rd Quarter		4th Quarter
Net income (Integral Approach)		$		$		$		$
Net income (Discrete Approach)		$		$		$		$

eTextbook and Media

Compute Marigolds profit margin on sales for each of the four quarters of 2020 under both the integral and discrete approaches. (Round answers to 1 decimal place, e.g. 52.5%.)

		Profit margin on sales
		1st Quarter		2nd Quarter		3rd Quarter		4th Quarter
Integral approach		%		%		%		%
Discrete approach		%		%		%		%