I really need help on Number 4. I have provided the answer for the other parts to help with answering number 4. If the work is provided in how you conclude to the answers, will be very much appreciated and will help me understand where I gone wrong and am missing. If your response helps me get the correct answers in what I am missing, I have no problem leaving a like since your time and efforts are valuable. Thank you!

1. Calculate the unit cost and the cost of ending inventory under absorption costing. (Round unit cost to the nearest cent and cost of ending inventory to the nearest dollar.)

Under the absorption costing method, the unit cost is $4.23

The cost of ending inventory is $5288

2. Calculate the unit cost and the cost of ending inventory under variable costing. (Round unit cost to the nearest cent and cost of ending inventory to the nearest dollar.)

Under the variable costing method, the unit cost is $2.47

The cost of ending inventory is $3088

3. What is the contribution margin per unit? (Round to the nearest cent.)

The contribution margin per unit is $3.92

Zeitgeist believes that multicolored sleeves will really take off after one year of sales. Management thinks sales this August will be twice as high as sales last August. (Be sure to complete 4(b) below the income statement.)

4(a) Prepare an income statement for August of this year using the assumed higher level of sales. Refer to the list of Labels and Amount Descriptions for the exact wording of text items within your income statement.

Zeitgeist Company

Income Statement

For August of This Year

1	Sales		205,025.00
2	Less variable expenses
3	Variable cost of goods sold	??????
4	Commissions	16,402.00	??????
5	Contribution margin		??????
6	Less fixed expenses
7	Fixed overhead	28160.00
8	Fixed administrative	37890.00	66,050.00
	Operating income		49708

4(b) Which costing method should be usedabsorption costing or variable costing?

Zeitgeist should choose the variable costing method.