T2 Manufacturing Ltd. manufactures electrical parts. Data for two of the company's customers is as follows:
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Question:
T2 Manufacturing Ltd. manufactures electrical parts. Data for two of the company's customers is as follows:
| Customer 1 | Customer 2 | |
| Revenues at list price | $67,840 | $132000 |
| Units sold | 85,000 | 12,000 |
| Unit list price | $8.90 | $11.20 |
| Cost of goods per unit | $6.10 | $6.25 |
| Sales discounts | $41,850 | $1,020 |
| Customer-specific costs | ||
| Order-taking | $13,600 | $1,500 |
| Product-handling | $14,100 | $1,350 |
| Delivery | $9,400 | $1,290 |
Required:
- A comparative income statement in gross margin format with one column for each customer; present customer-specific costs as period expenses.
Expert Answer:
Answer Here is the comparative income statement in gross margin format for the two customers of T2 M... View the full answer
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