UNITS PRODUCED AND SOLD 100,000 50,000 200,000 TOTAL COSTS VARIABLE COSTS FIXED COSTS $50,000 TOTAL COSTS COST PER UNIT VARIABLE COST FIXED COST $0.25 TOTAL COST PER UNIT ASSUME THE COMPANY SELLS 200,000 UNITS FOR $1/UNIT PREPARE A CONTRIBUTION FORMAT INCOME STATEMENT 1 cost behavior patterns include: (a) variable costs (b)fixed costs (c) mixed costs (d) all of the above (b) vary per unit (c) remain (1) c and d 2 fixed costs: (a) remain the same in total (d) vary in total (e) a and b constant per unit 3 variable costs: (a) remain the same in total (b) vary per unit (c) remain constant per unit (d) vary in total (e) a andb (t) cand d 4 a car lease that specified a $100 fee per month plus $.30 per mile would be an example of a: (a) fixed cost (b) variable cost (c) mixed cost 5 supervisors' salaries of $3,000 per month would be an example ot a: (a) tixed cost (b) variable cost (c) mixed cost 5 direct materials is an example of a: (a) fixed cost (b) variable cost (c) mixed cost NVENTORY PRODUCED (UNITS) INVENTORY SOLD (UNITS) 01/31/17 40,000 30,000 UNIT SALES PRICE $ 70 VARIABLE UNIT COST DM DL OH VARIABLE SELLING/ADM FIXED MFG OH FIXED SELLING/ADM 100,000 10 20 10 $ 120,000 PREPARE AN ABSORPTION INCOME STATEMENT AND A VARIABLE INCOME STATEMENT PERTAINING TO ABORPTION/VARIABLE INCOME STATEMENTS ANSWER THE FOLLOWING: IF UNIT SALES ARE LESS THAN UNITS PRODUCED IN A GIVEN MONTH THEN NET INCOME IS GREATER/EQUAL NET INCOME IF UNIT SALES ARE MORE THAN UNITS PRODUCED IN A GIVEN MONTH THEN NET INCOME NET INCOME IS GREATER/EQUAL IF UNIT SALES ARE EQUAL TO UNITS PRODUCED IN A GIVEN MONTH THEN NET INCOME NET INCOME IS GREATER/EQUAL . WHICH INCOME STATEMENT PRESENTATION IS USED FOR EXTERNAL FINANCIAL REPORTING WHICH INCOME STATEMENT PRESENTATION IS USED FOR INTERNAL MANAGEMENT USE