What is the difference between a contribution income statement and an income statement? I do not understand my homework questions. Need some help.

1. The J. Page Furniture Company has the following information available regarding costs at various levels of monthly production: Production volume (units) Direct materials Direct labor Indirect materials Supervisors' salaries Depreciation on plant and equipment Maintenance Utilities Insurance on plant and equipment Property taxes on plant and equipment Total 16,000 Units $70,000 66,000 21,000 12,000 10,000 32,000 15,000 1,600 2,000 $229,600 22,000 Units $100,000 90,000 30,000 12,000 10,000 44,000 21,000 1,600 2,000 $310,600 Develop an equation for total monthly production costs using the high-low method of cost estimation, and predict total costs for a monthly production volume of 18,000 units. 2. The J. Page Furniture Company has the following information available regarding costs at various levels of monthly production: Production volume (units) Direct materials Direct labor Indirect materials Supervisors' salaries Depreciation on plant and equipment Maintenance Utilities Insurance on plant and equipment Property taxes on plant and equipment Total 16,000 Units $ 70,000 66,000 21,000 12,000 10,000 32,000 15,000 1,600 2,000 $229,600 Identify each of the costs above as being variable, fixed, or mixed. 22,000 Units $100,000 90,000 30,000 12,000 10,000 44,000 21,000 1,600 2,000 $310,600 3. Ontario Outdoors is a manufacturer of outdoor items. The company is considering the possibility of offering a new sleeping bag that would sell for $150 each. Cost to manufacture these sleeping bags includes $40 in materials and $35 in direct labor for each sleeping bag. Variable marketing and selling costs would be $15 each. In order to manufacture these sleeping bags, the company would need to incur $120,000 in fixed costs for new equipment. Required: a. Compute the break-even point of the sleeping bag in units sold. b. What would be the total revenue at the break-even point? c. How many units would Ontario need to sell to earn a profit of $21,000? d. If fixed costs in fact are $150,000 rather than $120,000, how many units would need to be sold in order to earn $21,000? 4. The Findlay Company had the following functional income statement for the month of January 2014: Sales ($10 x 40,000 units) Cost of goods sold: Direct materials Direct labor Variable factory overhead Fixed factory overhead Gross profit Selling and administrative expenses: Variable Fixed Net income There were no beginning and ending inventories. Required: a. Prepare a contribution income statement. b. Calculate the contribution margin per unit. c. Calculate the contribution margin ratio. $400,000 $100,000 40,000 120,000 26,000 $24,000 24,000 - 286,000 $114,000 - 48,000 $ 66,000 5. Gleeson manufactures a single product with the following full unit costs for 6,000 units: Direct materials Direct labor Manufacturing overhead (40% variable) Selling expenses (60% variable) Administrative expenses (10% variable) Total per unit $160 80 240 80 40 $600 A company recently approached Gleeson with a special order to purchase 1,000 units for $575. Gleeson currently sells the models to dealers for $1,100. Capacity is sufficient to produce the extra 1,000 units. No selling expenses would be incurred on the special order. Required: a. Ignoring the special order, determine Gleeson's profit on production and sales of 6,000 units. Ignore taxes in these analyses. b. Should Gleeson accept the special order if its goal is to maximize short-run profits? Determine the impact on profit of accepting the order. c. Determine the minimum price Gleeson would want, to increase before tax profits by $160,000 on the special order. d. When making a special order decision, what non-quantitative aspects of the decision should Gleeson consider? 6. Regal produces a single product. The company's March 2014 income statement is as follows: Sales (1,200 x $120) Cost of goods sold Gross profit Selling and administrative Net income $144,000 - 108,000 $ 36,000 10,000 $ 26,000 There were no beginning or ending inventories of work-in-process or finished goods. Regal's full manufacturing costs were as follows: Direct materials (1,200 units x $20) Direct labor (1,200 units x $32) Variable manufacturing overhead (1,200 units x $18) Fixed manufacturing overhead Total Average cost per unit $ 24,000 38,400 21,600 24,000 $108,000 $90 Selling and administrative expenses are all fixed. Regal just received a special order from a firm in Mexico to purchase 900 units at $110 each. The order will not affect the selling price to regular customers. Required: a. Prepare a differential analysis of the relevant costs and revenues associated with the decision to accept or reject the special order, assuming Regal has excess capacity. b. Determine the net advantage or disadvantage (profit increase or decrease) of accepting the order, assuming Regal does not have excess capacity. 7. Boxcar, Inc., which uses a predetermined overhead rate based on direct labor hours, estimated total overhead for the year to be $10,000,000 and total direct labor hours to be 250,000 hours. Calculate Boxcar's predetermined overhead rate. In March, Boxcar incurred actual overhead costs of $830,000 and used 20,000 hours. How much was Boxcar's over- or under-applied overhead for the month of March? 8. Southeast Corp. obtained the following information from its accounting records: Sales Beginning Finished Goods Inventory Ending Finished Goods Inventory Cost of Goods Sold Ending Work-in-Process Inventory Calculate the Cost of Goods Manufactured for the period. $70,000 $42,000 $46,000 $45,000 $30,000 9. Brian Company manufactures two products: X and Y. The overhead costs have been divided into four activity pools that use the following cost drivers: Product Product X Product Y Cost per Pool Number of Materials Requisitions 24 16 Number of Machine Setups 70 230 Hours of Machine Operation 6,000 3,000 Number of Product Inspections 50 110 $20,000 $180,000 $270,000 $41,600 Required: a. Compute the unit activity costs for each of the cost drivers listed. b. Assign the overhead costs to products X and Y using activity-based costing. 10. Omaha Corp. produces three products: Clips, Staples, and Pens. Omaha uses a plantwide overhead rate based on machine hours. The following information is available for the next period: Product: Units Produced Machine Hours (Assembly) Machine Hours (Packing) Direct Labor hours (per unit) Direct Materials cost (per unit) Clips 3,000 1 1 2 $10.00 Staplers 2,000 3 1 2 $90.00 Pens 5,000 2 1 2 $30.00 Note that the direct labor wage rate is a flat $45 per hour with no overtime incurred. Also, total overhead costs are $860,000 for the Assembly Department and $500,000 for the Packing Department. Calculate the total product cost per unit of Pens. (Round to two decimal places, when necessary.)