a$.$ Prepare a Contribution Margin Income Statement for the firm without accepting the contract.

b$.$ Calculate the number additional units to bring production up to full capacity.

c$.$ Prepare a Contribution Margin Income Statement for the firm if Domco accepts the contract

$3.$ Fizen Lures Inc. manufactured fishing lures. Their most popular lure is a Bass plug which uses a hook purchased from another manufacturer and polystyrene for the body of the lure itself. The company uses highly automated injection molding machines to manufacture lures. Because of this direct labor cost are at a minimum because one machine operator can operate three injection molding machines at same time. The company has developed the following standard costs include scrap to manufacture each lure:

Material standards:

Hook: $1\mathrm{.}1$ Hooks per lure at $$\mathrm{.}10$ per hook.

Polystyrene plastic: $3\mathrm{.}5$ ounces per lure at $$\mathrm{.}25$ per ounce.

Labor standards:

Direct labor: $\mathrm{.}005$ hours to produce one lure at $$23\mathrm{.}50/$hr$.$ including all employer payroll taxes and benefits.

During month of April the company manufactured $120,000$ Bass lures and incurred the following costs:

Material costs:

Purchased $30,000$ pounds $(480,000$ ounces$)$ of polystyrene for a total cost of $$144,000$ dollars.

Used $418,000$ ounces of polystyrene to produce the Bass lures.

Purchased $140,000$ hooks for a total cost of $$13,500.$

Used $130,000$ hooks to produce the Bass lures.

Labor costs: $635$ hours for a total direct labor cost of $$15,240.$

FILL OUT THE TABLE IN THE PICTURE I SENT

Required $($use the spreadsheet provided$)16$: $$ using the above information calculate all variances for material and direct labor for the month of April.

PPV$=($AP$-$SP$)$AQP $($AP$*$AQP$)($SP$*$AQP$)$ VAR MUV$=($AQ$-$SQA$)$SP $($AQ$*$SP$)(($AP$*$SQA$)$SP$)$ VAR