am. 121. Aces Incorporated, a manufacturer of tennis rackets, began operations this year. The company produced 6,650 racketsand sold 5,230. Each racket was sold at a price of $90. Fixed overhead costs are $86,450 per year, and fixed selling andadministrative costs are $66,600 per year. The company also reports the following per unit variable costs for the year.Direct materialsDirect laborVariable overheadVariable selling and administrative expenses$ 12852Prepare an income statement under variable costing.Answer is complete but not entirely correct.ACES INCORPORATEDIncome Statement (Variable Costing)SalesLess: Variable expensesVariable cost of goods soldVariable selling and administrative expensesContribution marginLess: Fixed expensesFixed overheadFixed selling and administrative expenses00000000132,00010.560$87,750 O66,800$470,700142,560332,640154,550

An income statement helps in analyzing where to increase the revenue and decrease the cost to…

Aces Incorporated, a manufacturer of tennis rackets, began operations this year. The company produced 6,650 rackets and sold 5,230. Each racket was sold at a price of $90. Fixed overhead costs are $86,450 per year, and fixed selling and administrative costs are $66,600 per year. The company also reports the following per unit variable costs for the year. Direct materials Direct labor Variable overhead Variable selling and administrative expenses Prepare an income statement under variable costing. Answer is complete but not entirely correct. ACES INCORPORATED Income Statement (Variable Costing) Sales Less: Variable expenses Variable cost of goods sold Variable selling and administrative expenses Contribution margin Less: Fixed expenses Fixed overhead Fixed selling and administrative expenses 0000 0000 132.000 10.560 $ 87,750 C 66.800 $ 470.700 142,500 332,640 $ 12 8 5 2

Aces Incorporated, a manufacturer of tennis rackets, began operations this year. The company produced 6,650 rackets and sold 5,230. Each racket was sold at a price of $90. Fixed overhead costs are $86,450 per year, and fixed selling and administrative costs are $66,600 per year. The company also reports the following per unit variable costs for the year. Direct materials Direct labor Variable overhead Variable selling and administrative expenses Prepare an income statement under variable costing. Answer is complete but not entirely correct. ACES INCORPORATED Income Statement (Variable Costing) Sales Less: Variable expenses Variable cost of goods sold Variable selling and administrative expenses Contribution margin Less: Fixed expenses Fixed overhead Fixed selling and administrative expenses 0000 0000 132.000 10.560 $ 87,750 C 66.800 $ 470.700 142,500 332,640 $ 12 8 5 2

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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