Variable and Absorption Costing-Service Company Rocky's Automotive specializes in performing automobile safety checks. After the company's first year of operations, its accountant prepared the following summarized data report for the safety checks for 2016

Sales (7,000 safety checks)						$350,000
Production costs (7,010 safety checks)
Direct labor						245,350
Shop overhead
Variable						56,080
Fixed						35,050
Operating expenses
Variable						10,515
Fixed						8,000

a. Prepare an income statement based on full absorption costing. Only use a negative sign with your answer for net income (loss), if the answer represents a net loss. Otherwise, do not use negative signs with any answers. Round answers to the nearest whole number, when applicable.

Absorption Costing Income Statement
Sales						$Answer
Cost of Goods Sold:
Beginning Inventory					$Answer
Direct labor					Answer
AnswerContribution marginGross profitOperating expensesShop overhead~Variable shop overhead					Answer
Less: Ending Inventory					Answer
Cost of Goods Sold						Answer
AnswerContribution marginGross profitOperating expensesShop overheadVariable shop overhead						Answer
AnswerContribution marginGross profitOperating expensesShop overheadVariable shop overhead						Answer
Net Income (Loss)						$Answer

b. Prepare an income statement based on variable costing. Only use a negative sign with your answer for net income (loss), if the answer represents a net loss. Otherwise, do not use negative signs with any answers. Round answers to the nearest whole number, when applicable.

Variable Costing Income Statement
Sales						$Answer
Variable cost of Goods Sold:
Beginning Inventory					$Answer
Direct labor					Answer
AnswerContribution marginGross profitShop overheadVariable operating expensesVariable shop overhead					Answer
Less: Ending Inventory					Answer
Variable cost of goods sold						Answer
AnswerContribution marginGross profitShop overheadVariable operating expensesVariable shop overhead						Answer
AnswerContribution marginGross profitShop overheadVariable operating expensesVariable shop overhead						Answer
Fixed costs:
AnswerContribution marginGross profitShop overheadVariable operating expensesVariable shop overhead					Answer
Operating expenses					Answer
Total Fixed Cost						Answer
Net Income (Loss)						$Answer

c. Assume that you must decide quickly whether to accept a special one-time order for 20 safety checks on local police cars for $40 per safety check. Which income statement presents the most relevant data? Answerabsorption costingvariable costing Determine the apparent profit or loss on the special order based solely on these data. Use a negative sign with your answer if the special order creates an apparent loss. Round answer to the nearest whole number. $Answer

QUESTION S Nor complese Palnes our of aco Flor ques:an ariable and Absorption Costing-Service Company Rocky's Automotve speciallzes In pertormina automobile sarety checks. Atter the company's tirst year ot operations rs accountant prepared Lhe Tolowing suiariced dela repart for Lhe sa ely checks for 2016 5320,000 245,30 Shap overhesc arable Fined 0,515 boed 8,000 a. Preparc an income statement based on full absorption costing Only use a negative sign with your answer tor net income(loss), it the answer eresents a net loss, otherwise, do not use reative sens with any aiswers. Houand aresivers to the nearest whole numer, whe applicable Abaorption Custing Incomu Staterment Suua eginnirg Irvencoy Direlabor .ofcods sold NetIncome Loss b. Prepare an incorne sldlerment based on var iable cosing. Only use a ncgative sign with your answer for net Income (loss). if the answer represents a not loss, Otherwisc, do not use negattve signs with any answers. Round anewers to the nearest whole number, when applicable. Variable Costing Income Statement ariabie cost ot Gooca Soic Lessi Endins weor iced enre Operiexperses otal Fixed Cost c. Assume that you must decide quiddy whether to accept a spedal onecimc order for 20 sofety checks on local police cars for $40 per safety check Which Income statement presents the most relavant data? Determine the apparent profit or loss on the special order based solely on these data. Use a negative sign with your answer ifthe spetial arder creates an apperent ss.Found answer ta the rneatest whele rumiber Check