Violins-by-Sarah produces student-grade violins for beginning violin students. The company produced 2,100 violins in its first...

Transcribed Image Text:

Violins-by-Sarah produces student-grade violins for beginning violin students. The company produced 2,100 violins in its first month of operations. At month-end, 800 finished violins remained unsold. There was no inventory in work in process. Violins were sold for $120.00 each. Total costs from the month are as follows: (Click on the icon to view the data.) The company prepares traditional (absorption costing) income statements for its bankers. Sarah would also like to prepare contribution margin income statements for management use. Read the requirements Compute the following amounts that would be shown on these income statements: Requirement 1. Gross Profit Identify the formula, then compute the gross profit. Gross profit Violins-by-Sarah produces student-grade violins for beginning violin students. The company produced 2,100 violins in its first month of operations. At month-end, 800 finished violins remained unsold. There was no inventory in work in process. Violins were sold for $120.00 each. Total costs from the month are as follows: (Click on the icon to view the data.) The company prepares traditional (absorption costing) income statements for its bankers. Sarah would also like to prepare contribution margin income statements for management use. Read the requirements Compute the following amounts that would be shown on these income statements: Requirement 1. Gross Profit Identify the formula, then compute the gross profit. Gross profit