Question: Compudesk, Inc ? makes an oak desk specially designed for personal computers desk sells for $200. Data for last year?s operations follow: Units in beginning

 Compudesk, Inc ? makes an oak desk specially designed for personal

computers desk sells for $200. Data for last year?s operations follow: Units

Compudesk, Inc ? makes an oak desk specially designed for personal computers desk sells for $200. Data for last year?s operations follow: Units in beginning inventory 0 Units produced 10,000 Units sold 9,000 Units in ending inventory 1,000 Variable costs per unit: Direct materials $60 Direct Labor 30 Variable manufacturing overhead 10 Variable selling and administrative 20 Total variable cost per unit $120 Fixed Costs: Fixed manufacturing overhead $300,000 Fixed selling and administrative 450,000 Total Fixed Costs $750,000 1. Assume that the company uses variable costing. Compute the unit product cost for a computer desk. 2. Assume that the company uses variable costing. Prepare an income statement for the year in good form using the contribution format. 3. What is the company?s break-even pnt in terms of units sol? 4. Reconcile the difference. Refer to the data for Compudesk. Assume in this exercise that the company uses absorbtion costing 1. Compute the unit product cost for one computer desk. 2. Prepare an income statement for the year in good form. 1. What creates the difference in NIfull ? NIvar?

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