ACCT 2211 - CPV Review #2

Problem A.1

Philco Scuba Manufacturers manufactures and sells specialty scuba tanks for

nitrox or trimix gas divers.Their regular selling price is $1,000 per tank.

Complete the Income Statement below and use the information from this statement to answer the questions above.

Complete the Income Statement below and use the information from this statement to answer the questions above. Philco Scuba Manufacturers Income Statement for the year ended December 31, 2019 $ Total $ per unit %% Sales (1,200 units) $1,000.00 less: Variable Costs: Raw Materials 300.00 Direct Labor Manufacturing Overhead 7.5% Total Variable Costs 870,000 72.5% Contribution Margin 330,000 275.00 less: Fixed Costs Advertising Expense 25,000 Utility Expense - Factory 65,000 Utility Expense - Office 80,000 Wage Expense - Indirect Labor 50,000 Total Fixed Costs 220,000 Operating income 110.000