1. including a first segmented variable costing (behavioral) income statement for the company in good format.

second variable costing statement assuming 90% of all the books in each category purchased were actually sold.

third variable costing statement assuming that the price is increased by 50% for all five categories (use original sales information). The owner enjoys the used-book business. Any suggestions as how to turn this into a full-time business venture so the owner can quit his other job? Prepare another income statement to support your idea.

Interpret the results from the computations and explain how the information is useful. Start with an introduction and end with a recommendation.

Why do many organizations make the effort to prepare a different type of income statement for internal purposes? Variable costing is not just about preparing income statements. Provide at least three scenarios in which understanding how costs behave is useful

Price Categories A B C D E Units Sold 4,000 1,800 500 150 600 Units 6,000 6,000 1,000 1,000 1,200 Purchased Resale $5 $12 $15 $50 $70 Price Cost $2 $5 $10 $15 $25Shipping $1.75 per book Common fixed expenses Internet- related $18,000 costs Travel $5,800 Advertising $17,800 Other $9,400 overhead