Mastery Problemi Variable Costing for Management Analysis Absorption vs. Variable Method Comparison Absorption Statement Variable Statement Absorption vs. Variable Method Comparison Shaded cells have feedback Shaded cells have feedback Review the income statements on the Absorption Statement and variable Statement panels, then complete the following table. The company's sales price per unit is $75.00, and the number of unitsin ending inventory is 5,000 Amount Number of units sold Variable sales and administrative cost per unit Number of units manufactured Variable cost of goods manufactured per unit Fed manufacturing cost per un Points 015 Absorption Statement For the Year Ended December 31 1 Sales $1,125,000.00 2 Cost of goods sold: $0.00 840,000.00 Beginning inventory Cost of goods manufactured Ending inventory Total cost of goods sold (210,000.00) Gross profit 630,000.00 $495,000.00 275,000.00 Selling and administrative expenses Income from operations $220,000.00 Variable Statement $1,125,000.00 2 Sales Variable cost of goods sold: Beginning inventory Variable cost of goods manufactured Ending inventory $0.00 600,000.00 (150,000.00) 450,000.00 Total variable cost of goods sold Manufacturing margin $675,000.00 210,000.00 Variable selling and administrative expenses Contribution margin $465,000.00 10 Fixed costs: Fixed manufacturing costs $240,000.00 65,000.00 Fixed selling and administrative expenses Total fixed costs 305,000.00 $160,000.00 14 Income from operations