1) Simon Co. is a manufacturer of bicycles. Simon's "contribution margin format" income statement for the year ended Dec.31, 2023 is given below. (Assume that all of the units produced are sold): Sales (1,000 units) Variable Costs: Cost of Goods Sold Variable Selling Expenses Variable Administrative Expenses Contribution Margin Fixed Costs: Fixed Manufacturing Overhead Fixed Selling Expenses Fixed Administrative Expenses Operating Income 120,000 30,000 26,000 40,000 10,000 12,000 $260,000 (176,000) $84,000 (62,000) $22,000 Calculate the unit product cost per variable costing, unit product cost per absorption costing and the margin of safety in units. ANSWER BY CHOOSING THE MOST APPROPRIATE ANSWER FROM BELOW:
1) Simon Co. is a manufacturer of bicycles. Simon's "contribution margin format" income statement for the year ended Dec.31, 2023 is given below. (Assume that all of the units produced are sold): Sales (1,000 units) Variable Costs: Cost of Goods Sold Variable Selling Expenses Variable Administrative Expenses Contribution Margin Fixed Costs: Fixed Manufacturing Overhead Fixed Selling Expenses Fixed Administrative Expenses Operating Income 120,000 30,000 26,000 40,000 10,000 12,000 $260,000 (176,000) $84,000 (62,000) $22,000 Calculate the unit product cost per variable costing, unit product cost per absorption costing and the margin of safety in units. ANSWER BY CHOOSING THE MOST APPROPRIATE ANSWER FROM BELOW:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:1) Simon Co. is a manufacturer of bicycles. Simon's "contribution margin format income statement for the year ended Dec.31, 2023 is
given below. (Assume that all of the units produced are sold):
Sales (1,000 units)
Variable Costs:
Cost of Goods Sold
Variable Selling Expenses
Variable Administrative Expenses
Contribution Margin
Fixed Costs:
Fixed Manufacturing Overhead
Fixed Selling Expenses
Fixed Administrative Expenses
Operating Income
$260,000
120,000
30,000
26,000 (176,000)
$84,000
40,000
10,000
12,000
(62,000)
$22,000
Calculate the unit product cost per variable costing, unit product cost per absorption costing and the margin of safety in units.
ANSWER BY CHOOSING THE MOST APPROPRIATE ANSWER FROM BELOW:
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