DA$12\mathrm{.}2$ Data analytics can be used to analyze product costs.

Shade Inc. began operations two years ago in $2023.$ It produces $12-$foot patio umbrellas that are guaranteed for $10-$years, a warranty period that exceeds its competitors. Because of a robust year in $2024,$ all units were completed and shipped out as of December $31,2024.$ The production manager is eligible to receive quarterly bonuses based on the company's absorption costing income before taxes. The company has chosen practical capacity to allocate fixed overhead costs. Budgeted production and sales levels, unit selling prices and unit costs of the umbrellas for the upcoming year is provided here.

Unit Total

Practical capacity production $6,400$

Unit sales $6,635$

Selling price $$189\mathrm{.}00$

Direct materials cost $48\mathrm{.}56$

Direct labor cost $37\mathrm{.}90$

Variable manufacturing cost $12\mathrm{.}60$

Fixed manufacturing costs $$211,453$

Variable operating expenses $5\mathrm{.}37$

Fixed operating expenses $72,141$

Assume unit costs of inventories have not materially differed over since the company began operations.

Instructions

There are three parts to this problem. Use Excel to perform the following:

a$.$ Prepare budgeted comparative absorption income statements at production levels of $6,000$ to $7,000$ units in increments of $100$ units.

b$.$ Create a combo chart with a clustered column chart that illustrates gross margin and income before taxes over the range of units produced, and a line chart on the secondary axis. Include a descriptive chart title and axes labels in the chart.