Preston Racquets manufactures tennis racquets. The following data are available for last month. Units in beginning...

 

Transcribed Image Text:

Preston Racquets manufactures tennis racquets. The following data are available for last month. Units in beginning inventory Units produced during year Units in ending inventory Sales commissions per racquet Fixed manufacturing overhead Fixed marketing expenses Selling price per racquet Variable manufacturing cost per racquet 1,200 racquets 200 racquets $10.00 $48,000 $12,000 $200 $110 Using variable costing, what is the contribution margin for last month? Using absorption costing, what is cost of goods sold for last month? Using absorption costing, what is operating income for last month? Preston Racquets manufactures tennis racquets. The following data are available for last month. Units in beginning inventory Units produced during year Units in ending inventory Sales commissions per racquet Fixed manufacturing overhead Fixed marketing expenses Selling price per racquet Variable manufacturing cost per racquet 1,200 racquets 200 racquets $10.00 $48,000 $12,000 $200 $110 Using variable costing, what is the contribution margin for last month? Using absorption costing, what is cost of goods sold for last month? Using absorption costing, what is operating income for last month?

Answer rating: 100% (QA)

Solution To calculate the contribution margin cost of goods sold COGS and operating income using var... View the full answer