Answer:
<em>Net Profit Under Absorption Costing for 60,000 units = $ 430,000 for 90,000 units = $ 940,000</em>
<em>Net Profit Under Variable Costing for 60,000 units = $ 250,000 for 90,000 units = $ 940,000</em>
Explanation:
Enterprise Corporation
Dilithium Batteries
Absorption Costing Income Statement,
60,000 90,000
Sales 2100,000 3150,000
Manufacturing Costs 1500,000 1980,000
Gross Profit 600,000 1170,000
Variable Selling and
Administrative Expenses 120,000 180,000
<u>Fixed Selling & Ad. Expenses 50,000 50,000</u>
<u>Net Profit 430,000 940,000</u>
<u />
Enterprise Corporation
Dilithium Batteries
Variable Costing Income Statement,
60,000 90,000
Sales 2100,000 3150,000
Variable
Manufacturing Costs 960,000 1440,000
Variable Selling and
Administrative Expenses 120,000 180,000
Contribution Margin 840,000 1530,000
Fixed manufacturing overhead 540,000 540,000
costs
<u>Fixed Selling & Ad. Expenses 50,000 50,000</u>
<u>Net Profit 250,000 940,000</u>
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