Variable Cost/unit $ 8.00 Fixed Mig. Costs $ 240,000 $ 20,000 Selling & Admin Exp (75% Variable) Scenario 2 2 Varriable Costing 3 4 5 Assume the following information 6 7 Sales 12,000 Units 8 9 Production Scenario 1 12,000 Units 10 Scenario 2 48,000 Units 11 12 Selling Price/unit $ 18,00 13 14 Scenario 15 16 1. Prepare an income statement for both scenarios under the 17 Absorption method of costing: 18 19 Sales 20 21 COGS 22 23 Gross Profit 24 25 Selling & Admin Exp. 26 27 Inc. from Operations 28 29 2. Prepare an income statement for both scenarios under the 30 Variable method of costing: 31 32 Sales 33 34 Variable Mig. 35 36 Mig Margin 37 38 Variable S & A 39 40 Contribution Margin 1 #2 Fixed Mig 3 Fixed S & A 4 45 Inc. from Operations 46 7 28 99 50 51 52 53 54 10000TOONI INITION DI