Required:

Prepare an income statement using absorption costing based on production of $20,000$ tons and sales of $16,000$ tons. Can $t$ company report a positive income by increasing production to $20,000$ tons and storing the $4,000$ tons of excess production inventory?

By how much does income increase by when producing $20,000$ tons and storing $4,000$ tons in inventory compared to only producing $16,000$ tons?

Complete this question by entering your answers in the tabs below.

Prepare an income statement using absorption costing based on production of $20,000$ tons and sales of $16,000$ tons. Can the company report a positive income by increasing production to $20,000$ tons and storing the $4,000$ tons of excess production in inventory?

Note:Round your answers to the nearest whole dollar.

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$\backslash$table$[[$BLAZER CHEMICAL$],[$Income Statement $($Absorption Costing$)],[$Sales$,$$$,1,280,000$

Required:

Prepare an income statement using absorption costing based on production of $20,000$ tons and sales of $16,000$ tons. Can $t$ company report a positive income by increasing production to $20,000$ tons and storing the $4,000$ tons of excess production inventory?

By how much does income increase by when producing $20,000$ tons and storing $4,000$ tons in inventory compared to only producing $16,000$ tons?

Complete this question by entering your answers in the tabs below.

Prepare an income statement using absorption costing based on production of $20,000$ tons and sales of $16,000$ tons. Can the company report a positive income by increasing production to $20,000$ tons and storing the $4,000$ tons of excess production in inventory?

Note: Round your answers to the nearest whole dollar.

Show less $4$

$\backslash$table$[[$BLAZER CHEMICAL$],[$Income Statement $($Absorption Costing$)],[$Sales$,$$$,1,280,000$

Blazer Chemical produces and sells an ice$-$melting granular used on roadways and sidewalks in winter. It annually produces and sells $20,000$ tons of its granular. Because of this year's mild winter, projected demand for its product is only $16,000$ tons. Based on projected production and sales of $16,000$ tons, the company estimates the following income using absorption costing.

$\backslash$table$[[$Sales tons at $$80$ per ton$),$$$1,280,000$