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Accessibility tab summary: Financial data for Addison Incorporated is presented in rows 4 to 17. A statement for requirement 1 is presented in rows 19 to 24 and the table for student presentation is presented in row 26. A contribution margin income statement for student preparation is presented in cells A30 to C38. A table for student preparation is presented in row 40. A statement for requirement 2 is presented in row 42 and the table for student presentation is presented in row 46. An income statement for student preparation is presented in cells A48 to B52. A statement of requirement is presented in row 54 and the table for student presentation is presented in row 55.
Addison, Inc. makes a single product, an indoor fireplace. Data for last year is as follows:
Selling price per fireplace	$
Manufacturing costs:
Variable per unit produced:
Direct materials	$
Direct labor	$
Variable manufacturing overhead	$
Fixed manufacturing overhead per year	$
Selling and administrative expenses:
Variable per unit sold	$
Fixed per year	$
Units in beginning inventory
Units produced during the year
Units sold during the year
Required:
Use the data to answer the following.
(Use cells A4 to B17 from the given information, as well as A26 to C52 to complete this question. All answers should be input and displayed as positive values.)
1. Assume the company uses variable costing:
Compute the unit product cost for one fireplace	$
Prepare a contribution margin income statement for the year
Sales		$
Variable expenses:
Variable cost of goods sold	$
Variable selling and administrative expenses
Contribution margin		$
Fixed expenses:
Fixed manufacturing overhead	$
Fixed selling and administrative expenses
Net operating income		$
Compute the number of fireplaces required to break even
2. Assume the company uses absorption costing:
Compute the unit product cost for one fireplace	$
Prepare an income statement for the year
Sales
Cost of goods sold
Gross margin
Selling and administrative expenses
Net operating income
Was fixed overhead deferred to or released from inventory?
Fixed overhead was: