Please do not give solution in image format thanku Absorption and Variable Costing Comparisons: Sales Exceed ProductionWright Development purchases, develops, and sells commercial building sites. As the sites are sold, they are cleared at an average cost of $8,000 per site. Storm drains anddriveways are also installed at an average cost of $10,000 per site. Selling costs are 6% of sales price. Administrative costs are $600,000 per year. Two years ago, the companybought 2,000 acres of land for $7,500,000 and divided it into 200 sites of equal size. During that year. 95 sites were sold at an average price of $150,000. Last year, thecompany purchased and developed another 2,000 acres, divided into 200 sites. The purchase price was again $7,500,000. Sales totaled 250 sites last year at an average priceof $150,000.Requireda. Prepare functional income statements using absorption costing for each of the two years.Use a negative sign only to indicate a net loss for income. Otherwise, do not use negative signs with your answers.Wright DevelopmentFunctional (Absorption Costing) Income StatementsComparative(in thousands, except site data)SalesCost of salesGross profitSelling and administrative expensesNet income doss)5Year 1$Year 2 b. Prepare contribution income statements using variable costing for each of the two years.Use a negative sign only to indicate a net loss for income. Otherwise, do not use negative signs with your answers.Wright DevelopmentContribution Income StatementsComparative(in thousands, except site data)SalesVariable costsContribution marginFixed expensesNet income (loss)$$Year 1$Year 2

Name: Please do not give solution in image format thanku Absorption and Vari
Uploaded: 2024-03-20T06:32:49.000Z
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Description: Please do not give solution in image format thanku Absorption and Variable Costing Comparisons: Sales Exceed ProductionWright Development purchases, develops, and sells commercial building sites. As the sites are sold, they are cleared at an average