Question: could you please solve this question? CBA is a division of Flynn, Inc. The division manufactures and sells a pump that is used in a
CBA is a division of Flynn, Inc. The division manufactures and sells a pump that is used in a wide variety of applications. During the coming year, it expects to sell 30,000 units for $25 per unit Raad Ali, division manager, is considering producing either 30,000 or 40,000 units during the period. Other information is presented in the schedule below: Division Information - 2016 Beginning inventory 0 Expected sales in units 30,000 Selling price per unit $25 Variable manufacturing cost per unit $7 Fixed manufacturing overhead costs (total) $480,000 Fixed manufacturing overhead costs per unit Based on 30,000 units ($480,000 + 30,000) $16 Based on 40,000 units ($480,000 + 40,000) $12 Manufacturing cost per unit Based on 30,000 units ($7 variable + $16 fixed) $23 Based on 40,000 units ($7 variable + $12 fixed) $19 Selling and administrative expenses (all fixed) $25,000 Instructions Prepare a variable costing income statement with one column showing the results if 30,000 units are produced and one column showing the results if 40,000 units are produced
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