# 5. The Windy Wind Chime Company has been producing and selling wind chimes for a number of years. The following information was gathered for 2016. Selling price per unit $12.50 Variable Cost per Unit: Direct Materials $3.00 Direct Labor $2.50 Overhead $1.20 Selling & Admin $2.35 Fixed Costs (Total) Overhead $50,000 $45,000 Selling & Admin
# 5. The Windy Wind Chime Company has been producing and selling wind chimes for a number of years. The following information was gathered for 2016. Selling price per unit $12.50 Variable Cost per Unit: Direct Materials $3.00 Direct Labor $2.50 Overhead $1.20 Selling & Admin $2.35 Fixed Costs (Total) Overhead $50,000 $45,000 Selling & Admin
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Prepare an income statement using the contribution approach for both scenarios.
#1 windy wond chime has produced and sold 100,000 units.
#2 windy wind chimes has produced 100,000 units but sold 120,000 units

Transcribed Image Text:D5
D6 #5. The Windy Wind Chime Company has been producing and selling wind chimes for a number of years. The following information was gathered for 2016.
D7
08
Selling price per unit
$12.50
D9
Variable Cost per Unit:
11
Direct Materials
$3.00
12
Direct Labor
$2.50
13
Overhead
$1.20
14
Selling & Admin
$2.35
15
Fixed Costs (Total)
16
17
Overhead
$50,000
S45,000
18
Selling & Admin
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