Xantra Corp. is a manufacturer of specialty in-line skates. The operating results for 2020 are as follows:

Units produced		19,000	pairs
Units sold		17,600	pairs
Selling price		$225	per pair

Production information:
Direct materials		$988,000
Direct labour		722,000
Variable manufacturing overhead		427,500
Fixed manufacturing overhead		741,000
Variable marketing costs		176,000
Fixed marketing costs		202,000

There was no beginning finished goods inventory.

Prepare a variable-costing income statement.

XANTRA Corp. Income StatementVariable Costing December 31, 2020Month Ended December 31, 2020Year Ended December 31, 2020
	Production in units
	Sales in units
	Fixed costsVariable marketing costsVariable cost of goods soldContribution marginSalesGross marginNet income				$
	AddLess : Inventory, beginningVolume varianceCost of goods available for saleCosts of goods manufacturedSelling and administrative expensesVariable costsInventory, ending
	Cost of goods available for sale Costs of goods manufactured Volume variance Selling and administrative expenses Variable cost of goods sold Inventory, beginning Inventory, ending		$
	Add Less : Costs of goods manufacturedVolume varianceInventory, endingCost of goods available for saleSelling and administrative expensesVariable costsInventory, beginning
	Cost of goods available for sale Costs of goods manufactured Variable cost of goods sold Volume variance Inventory, beginning Inventory, ending Selling and administrative expenses
	Add Less : Inventory, beginningInventory, endingSelling and administrative expensesCost of goods available for saleVolume varianceCosts of goods manufacturedVariable costs
	Inventory, ending Inventory, beginning Selling and administrative expenses Variable cost of goods sold Cost of goods available for sale Volume variance Costs of goods manufactured
	Fixed costs Variable marketing costs Gross margin Net income Variable cost of goods sold Contribution margin Sales
	Fixed costsVariable cost of goods soldNet incomeVariable marketing costsContribution marginSalesGross margin
	AddLess : Fixed costsSalesGross marginVariable marketing costsNet incomeVariable cost of goods soldContribution margin
	Variable marketing costsVariable cost of goods soldNet incomeFixed costsContribution marginSalesGross margin				$

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 current cost structure.

Break-even point

units