G M Bb 1 X M Bb UCSC LICSC HER + ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252... * S GA Ch 6 HW - ACG3073 i Saved Help Save & Exit Submit Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to question 14 Blazer Chemical produces and sells an ice-melting granular used on roadways and sidewalks in winter. It annually produces and sells about 100 tons of its granular. In its nine-year history, the company has never reported a net loss. However, because of this year's unusually mild winter, projected demand for its product is only 70 tons. Based on its predicted production and sales of 70 12 tons, the company projects the following income statement (under absorption costing). points Sales (70 tons at $21,500 per ton) $1, 505, 000 Cost of goods sold (70 tons at $16,500 per ton) 1, 155, 000 Gross margin 350, 000 Selling and administrative expenses 372, 400 Net loss $ (22, 400) Its product cost information follows and consists mainly of fixed cost because of its automated production process requiring expensive equipment. Variable direct labor and material costs per ton $ 5,357 Fixed cost per ton ($780, 000 + 70 tons) 11, 143 Total product cost per ton $16, 500 Selling and administrative expenses consist of variable selling and administrative expenses of $320 per ton and fixed selling and administrative expenses of $350,000 per year. The company's president is concerned about the adverse reaction from its Mc Graw WechatIMG1365.jpeg WechatIMG1364.jpeg WechatIMG1363.jpeg A ELWR Appeal Pa..odt A XGllllmlillull '* "\"lli'li'lm 'i"|W|W|3|I||W|{3|3|=JIE'lQlll+ 9 { ) C H ezto.mheducation.comfextfmapndex.html?_con=l:onScexternalJarowser=0&|aunchUrl=https%253A%252... 1': '13: Eh # 3 Ch 5 met ACGBDTB 0 Saved Help Save 1: Exit Submit Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to question 14 Selling and administrative expenses consist of variable selling and administrative expenses of $320 per ton and xed selling and administrative expenses of $350,000 per year. The company's president is concerned about the adverse reaction from its creditors and shareholders if the projected net loss is reported. The operations manager mentions that since the company has large storage capacity. it can report a net income by keeping its production at the usual 100-ton level even though it expects to sell only 1'0 tons. The president is puzzled by the suggestion that the company can report income by producing more without 12 points increasing sales. Required: 1. Can the company report a net income by increasing production to 100 tons and storing the excess production in inventory? Complete the following income statement {using absorption costing] based on production of 100 tons and sales of 1'0 tons. {Round your answers to the nearest whole dollar.) 9 Answer Is not oompleta. Variable direct labor and material per ton 0 Fixed overhead per ton 9 Cost of goods sold per unit M' II. WechatIMG1365.jpeg WechatIMG1364.jpeg WechatIMG1363.jpeg A ELWR Appeal Pa..odt X