answer 2a-e and 3a-c

BTW Can A1 A, a product, indoor plan Duta C Adoning minder. Data for fast year is one $400 $135 Sing price per place Manacor sparne produced Der > www.mandatang mandling Stingan 11 Vare per 1 $ 210.000 545 $190.000 SO 500 1 ts begory 1 tsp the sed during the 17 1 Utoto wetu 1. Am the company wiec Campuni produse 34 Prepare a contribution for the READY BIU- - Alignment Number Conditional Format as Cell Formatting Table Styles - Cells Editing Clipboard Font 2 1 X Addison, Inc. makes a single product, an indoor fireplace. Data for last year is as A D E $ 1,890,000 $ 25 26 Sales 27 Variable expenses 28 Variable cost of goods sold 29 Variable selling and administrative expenses 30 Contribution margin 31 Fored expenses 32 Fixed manufacturing overhead 33 Foed selling and administrative expenses 34 Net operating income 967,500 202.500 1.170,000 720,000 210,000 190,000 400,000 320,000 $ 35 2.500 37 36 Compute the number of fireplaces required to breakeven 38 2. Assume the company uses absorption costing: 20 Compute the unit product cost for one fireplace 42 Prepare an income statement for the year 39 s 257 41 $ 44 Sales 45 Cost of goods sold 46 Gross margin 47 Selling and administrative expenses 48 Net operating income 1,890,000 1,156 500 733,500 392,500 341,000 $ Sheet1 READY 100% Attempt(s MCIL OFL WURSEL blue EU U UU yuUWIT WURST VISION OIle Review U TUR 7. Change all of the numbers in the data area of your worksheet so that it looks like this A 1 2 Chapter 6: Applying Excel 5 320 $ $ $ $ 137 56 27 190.400 3 Data Selling price per unit 5 Manufacturing costs 0 Variable per un produced 2 Dere materials Direct labor Variable manufacturing overhead -10 Fixed manufacturing overhead per year 11 Sling and administrative expenses 12 Variable per un sold 13 Fred per year 14 15 16 Units in beginning inventory 17 Units produced during the year 1 hold during the year 7 $ $ 81.000 Yew 2 Year 1 0 3.400 3.000 2.300 3.000 Required information if your formulas are corect, you should get the correct answers to the following questions (a) What is the net operating income foss) in Year under absorption costing? bok int rences b) What is the net operating income foss) in Year 2 under absorption costing (c) What is the net operating income fossin Year under variable costing Id What is the net operating income foss) in Year 2 under variable costing E FW (e) The net operating income (loss) under absorption costing is less than the net operating income (loss) under variable costing in Year 2 because (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) tes 2 Units were left over from the previous year. The cost of goods sold is always less under variable costing than under absorption costing Sales exceeded production so some of the fixed manufacturing overhead of the period was released from inventories under absorption costing 3 Make a note of the absorption costing net operating income (oss) in Year 2 At the end of Year 1, the company's board of directors set a target for Year 2 of net operating income of $90,000 under absorption costing. If this target is met a hefty bonus would be paid to the CEO of the company, Keeping everything else the same from part (2) above, change the units produced in Year 2 to 5600 units. (a) Would this change result in a bonus being paid to the CEO? Yes O NO (b) What is the net operating income foss) in Year 2 under absorption costing? - (c) Would this doubling of production in Year 2 be in the best interests of the company if sales are expected to continue to be 3,000 units per year? Yes NO