ULICHIO Absorption Costing Income Statement Print Item On October 31, the end of the first month of operations, Maryville Equipment Company prepared the following income statement, based on the variable costing concept Maryville Equipment Company Variable Costing Income Statement For the Month Ended October 31 $584,200 Sales (12,700 units) Variable cost of goods sold Variable cost of goods manufactured Inventory, October 31 (1,800 units) Total variable cost of goods sold Manufacturing margin Variable selling and administrative expenses Contribution margin $261,000 (32,400) (228 600) $355,600 (152,400) $203,200 Fixed costs Fixed manufacturing costs 558,000 Fixed selling and administrative expenses Total fixed costs 38 100 Operating income (96,100) $107 100 Fixed costs LUULUU $58,000 Fixed manufacturing costs Fixed selling and administrative expenses Total fixed costs Operating income 38,100 (96,100) $107,100 Prepare an income statement under absorption costing Round all final answers to whole dollars Maryville Equipment Company Absorption Costing Income Statement For the Month Ended October 31 Cost of goods sold Change in Sales Mix and Contribution Margin Head Pops Inc, manufactures two models of solar powered, noise canceling headphones Sun Sound and Ear Bling models The company is operating at less than full capacity Market research indicates that 21,400 additional Sun Sound and 23,500 additional Ear Bling headphones could be sold The operating income by unit of product is as follows Sun Sound Ear Bling Headphones Headphones Sales price $40 70 $63 50 Variable cost of goods sold (22 80) (35 60) Manufacturing margin $17 90 $27 90 Variable selling and administrative expenses (8 10) (12 70) Contribution margin $9 80 $15 20 Fixed manufacturing costs (3 70) 5 70 Operating income 56 10 39 50 Prepare an analysis indicating the increase or decrease in total profitability if 21 400 additional Sun Sound and 22 500 additional Ear Bung beadhones are produced and sold, assuming that there is sufficient capacity for the additional production Round your per unit answers to two decimal place Head Pops Inc Analysis Sun Sound Headphones Ear Bling Headphones $40 70 (22 80) Variable cost of goods sold Manufacturing margin Variable selling and administrative expenses $63 50 (35 60) $17 90 $27 90 (8 10) (12 70) Contribution margin Fixed manufacturing costs $9 80 $15 20 (3 70) (5 70) Operating Income $6 10 $9 50 Prepare an analysis indicating the increase or decrease in total profitability if 21,400 additional Sun Sound and 23,500 additional Ear Bing headphones

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ULICHIO Absorption Costing Income Statement Print Item On October 31, the end of the first month of operations, Maryville Equipment Company prepared the following income statement, based on the variable costing concept  Maryville Equipment Company Variable Costing Income Statement For the Month Ended October 31 $584,200 Sales (12,700 units) Variable cost of goods sold  Variable cost of goods manufactured Inventory, October 31 (1,800 units) Total variable cost of goods sold Manufacturing margin Variable selling and administrative expenses Contribution margin $261,000 (32,400) (228 600) $355,600 (152,400) $203,200 Fixed costs  Fixed manufacturing costs 558,000 Fixed selling and administrative expenses Total fixed costs 38 100 Operating income (96,100) $107 100 Fixed costs  LUULUU $58,000 Fixed manufacturing costs Fixed selling and administrative expenses Total fixed costs Operating income 38,100 (96,100) $107,100 Prepare an income statement under absorption costing  Round all final answers to whole dollars  Maryville Equipment Company Absorption Costing Income Statement For the Month Ended October 31 Cost of goods sold  Change in Sales Mix and Contribution Margin Head Pops Inc, manufactures two models of solar powered, noise canceling headphones  Sun Sound and Ear Bling models  The company is operating at less than full capacity  Market research indicates that 21,400 additional Sun Sound and 23,500 additional Ear Bling headphones could be sold  The operating income by unit of product is as follows  Sun Sound Ear Bling Headphones Headphones Sales price $40 70 $63 50 Variable cost of goods sold (22 80) (35 60) Manufacturing margin $17 90 $27 90 Variable selling and administrative expenses (8 10) (12 70) Contribution margin $9 80 $15 20 Fixed manufacturing costs (3 70) 5 70 Operating income 56 10 39 50 Prepare an analysis indicating the increase or decrease in total profitability if 21 400 additional Sun Sound and 22 500 additional Ear Bung beadhones are produced and sold, assuming that there is sufficient capacity for the additional production  Round your per unit answers to two decimal place Head Pops Inc  Analysis Sun Sound Headphones Ear Bling Headphones $40 70 (22 80) Variable cost of goods sold Manufacturing margin Variable selling and administrative expenses $63 50 (35 60) $17 90 $27 90 (8 10) (12 70) Contribution margin Fixed manufacturing costs $9 80 $15 20 (3 70) (5 70) Operating Income $6 10 $9 50 Prepare an analysis indicating the increase or decrease in total profitability if 21,400 additional Sun Sound and 23,500 additional Ear Bing headphones

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