Answer:
Results are below.
Explanation:
<u>First, we need to determine the units sold:</u>
<u />
Units sold= 924,000/420= 2,200
<u>Absorption costing income statement:</u>
Sales= 924,000
COGS= (46*2,200)= (101,200)
Gross profit= 822,800
Total administrative expense= (18*2,200) + 115,00= (154,600)
Total fixed selling expense= (135,000)
Net operating profit= 533,200
<u>Variable costing income statement:</u>
Sales= 924,000
Variable cost= (46 + 18)*2,200= (140,800)
contribution margin= 783,200
Total administrative expense= (115,000)
Total fixed selling expense= (135,000)
Net operating profit= 533,200
Contribution margin per unit= 420 - (46+18)= $356
