Xantra Corp. is a manufacturer of specialty in-line skates. The operating results for 2016 are as follows:

Units produced

19,000 pairs

Units sold

17,800 pairs

Selling price

$215

per pair

Production information:

Direct materials

$931,000

Direct labour

712,500

Variable manufacturing overhead

399,000

Fixed manufacturing overhead

779,000

Variable marketing costs

178,000

Fixed marketing costs

204,500

There was no beginning finished goods inventory.

Prepare an absorption-costing income statement.

XANTRA Corp.

Income Statement

Year ended December 31, 2016

Absorption Costing

Production in units

Sales in units

$

:

$

:

:

:

$

Prepare a variable-costing income statement.

XANTRA Corp.

Variable Costing Income Statement

Year ended December 31, 2016

Production in units

Sales in units

$

:

$

:

:

:

$

Reconcile the net incomes under absorption costing and variable costing.

Variable costing net income

$

Fixed MOH deferred in ending inventory

$

Absorption costing net income

$

Calculate the break-even point in sales units (pairs of skates) under the