Answer:
Instructions are below.
Explanation:
Giving the following information:
Selling price= $210.
Units sold 19,000
Variable costs per unit:
Direct materials $50
Direct labor $80
Variable manufacturing overhead $20
Variable selling and administrative $10
Fixed costs:
Fixed manufacturing overhead $700,000
Fixed selling and administrative 285,000
Total fixed costs $ 985,000
Under the variable costing method, the unitary product cost is calculated using the direct material, direct labor, and variable overhead.
Unitary variable cost= 50 + 80 + 20= $150
Income statement:
Sales= 210*19,000= 3,990,000
Varaiable cost= 150*19,000= (2,850,000)
Contribution margin= 1,140,000
Variable administrative cost= 10*19,000= (190,000)
Fixed manufacturing overhead= (700,000)
Fixed selling and administrative= (285,000)
Net operating income= (35,000)
