Use the income statements on the absorption statement and variable statement panels to complete the following table for the original production level. Then prepair similar income statements at a production level 10,000 units higher. Assume that total fixed costs, unit variable costs, unit sales price, and the sales levels are the same at both production levels.

Term Project 1 eAssignmentMain doTinwoker inprogress Manufacturing Decisions Whenever the units manufactured differ from the units sold, finished goods inventory is affected. In analyzing income from operations, such increases and decreases could be misinterpreted as operaig efficiencios or inefficiencies. Each decision-making stuation should be carefully analyzed in deciding whether absorption or variable cosing reporting would be more uselu All costs are controllable in the long run by someone within a business For a given level of management costs may be controlabe conts or concontrollable.costs The production manager for Saxon, Inc. is worred because the compeny ia not showing a high enough proft Looking at the income statements on the Absorption Satemert panel and the Variatbla Statement panel, he notices that the income from operations is higher on the absorption cost income statement He readons that this wil boost income from operations and satisly the company's owner that the company is sulficiently proftable Athough the total units He is considering manufacturing another 10,000 unts, up to the company's capacity for changes, assume that total fixed costs, unt variable costs, unt sales price, and the sales levels are the same Complete questions (1)-(4) that follow. If the answer is zero, enter "O 1. Use the income statements an the Absorption Statement and Variable Statement panels to production level 10,000 units higher and add that information to the table Assume that total floxed costs, unit vaniable costs, unit sales complete the following table for the original production level Then prepare aimiler income statements at a price, and the sales levels are the same at both production levels Income From Operations Original Production Level-Absorption Original Production Level-Variable Additional 10,000 Units-Absorption 10,000 Units-Variable 575,000 X $265,000 $325,000 k My Work 7 more Check My Work uses remaining Email Instructor All work saved Score: 87.69%