Question: 4. XYS computer supplies storage devices. It currently faces the following ordering decision rating of purchases of very high-density disks: D = 36,0000 disks, S

4. XYS computer supplies storage devices. It currently faces the following ordering decision rating of purchases of very high-density disks: D = 36,0000 disks, S = $25, H = $0.45, Purchase Price = $0.85, Discount Price = $0.82, and Quantity needed to qualify for the discount = 6000 disks. Should the discount be taken? (20 points) A company has a variable manufacturing cost of $3.00 per unit, a variable selling cost of $1.00 per unit; a fixed manufacturing cost of $100,000 per year; and a fixed selling and administrative cost of $60,000 per year. The selling price is $9.00 per unit. During the year, 50,000 units are produced and 42,000 units are sold. a. Prepare an income statement using full costing. Use the information below for guidance. Prepare an income statement using variable costing. Use the information below for guidance.. Explain in detail the reason for the difference in net income between the two methods. Use the contribution margin ratio to determine net income if sales increased by 15%. c. d. Full Costing Sales Cost of Goods Sold Gross Margin Selling and Administrative Expenses Net Income Variable Costing Sales Less: Variable Costs Variable cost of goods sold Variable selling costs Contribution margin Less: Fixed Costs Fixed production costs Fixed selling and administrative costs Net Income
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