Addison, Inc. makes a single product, an indoor fireplace. Data for last year is as follows: Selling price per fireplace Manufacturing costs: Variable per unit produced: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead per year Selling and administrative expenses: Variable per unit sold Fixed per year Units in beginning inventory Units produced during the year Units sold during the year Required: Use the data to answer the following. $420 $135 $43 $37 $210,000 $45 $190,000 0 5,000 4,500 (Use cells A4 to B17 from the given information, as well as A26 to C52 to complete this question. All answers should be input and displayed as positive values.) 4 1. Assume the company uses variable costing: 5 6 Compute the unit product cost for one fireplace 7 8 Prepare a contribution margin income statement for the year 9 0 Sales 1 Variable expenses: 2 Variable cost of goods sold 3 Variable selling and administrative expenses 4 Contribution margin 5 Fixed expenses: 6 Fixed manufacturing overhead 7 8 9 Fixed selling and administrative expenses Net operating income 0 Compute the number of fireplaces required to break even 1 2 2. Assume the company uses absorption costing: 3 4 Compute the unit product cost for one fireplace 5 6 Prepare an income statement for the year 7 8 Sales 9 Cost of goods sold 0 Gross margin 1 Selling and administrative expenses 2 Net operating income 3 4 Was fixed overhead deferred to or released from inventory? 5 Fixed overhead was: 6 7