Variable Costing

Leone Company has the following information for July:

Sales	$430,000
Variable cost of goods sold	206,400
Fixed manufacturing costs	64,500
Variable selling and administrative expenses	47,300
Fixed selling and administrative expenses	25,800

Determine the following for Leone Company for the month of July:

a. Manufacturing margin	$
b. Contribution margin	$
c. Income from operations	$

2)

Variable CostingProduction Exceeds Sales

Fixed manufacturing costs are $40 per unit, and variable manufacturing costs are $120 per unit. Production was 131,000 units, while sales were 123,140 units.

a. Determine whether variable costing income from operations is less than or greater than absorption costing income from operations.

b. Determine the difference in variable costing and absorption costing income from operations. $