b. Prepare a variable costing income statement for the three products. Enter a net loss as a negative number using a minus sign.Winslow Inc.Variable Costing Income Statements-Three Product LinesFor the Year Ended December 31, 20Y1Cross Training ShoesGolf ShoesRunning ShoesRevenues$ 557,700Variable cost of goods soldManufacturing margin$4Variable selling and administrative expensesContribution marginFixed costs:Fixed manufacturing costsFixed selling and administrative expenses$1Total fixed costsOperating income (loss) For the Year Ended December 31, 20Y1Cross Training ShoesGolf Shoes Running ShoesRevenues$557,700$334,600$281,100Cost of goods sold(290,000)(164,000)(188,300)Gross profit$267,700$170,600$92,800Selling and administrative expenses(230,200)(122,800)(155,000)Operating income$37,500$47,800$(62,200)In addition, you have determined the following information with respect to allocated fixed costs:CrossGolfRunningTrainingShoesShoesShoesFixed costs:Cost of goods sold$89,200 $43,500 $39,400Selling and administrative expenses66,90040,20039,400These fixed costs are used to support all three product lines and will not change with the elimination of any one product. In addition, you have determinedthat the effects of inventory may be ignored.The management of the company has deemed the profit performance of the running shoe line as unacceptable. As a result, it has decided to eliminate therunning shoe line. Management does not expect to be able to increase sales in the other two lines. However, as a result of eliminating the running shoe line,management expects the profits of the company to increase by $62,200.

Name: b. Prepare a variable costing income statement for the three products
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Description: b. Prepare a variable costing income statement for the three products. Enter a net loss as a negative number using a minus sign.Winslow Inc.Variable Costing Income Statements-Three Product LinesFor the Year Ended December 31, 20Y1Cross Training Shoe

A variable costing income statement is one of which all variable exp are deducted from revenue to…

Business

Accounting

b. Prepare a variable costing income statement for the three products. Enter a net loss as a negative number using a m Winslow Inc. Variable Costing Income Statements-Three Product Lines For the Year Ended December 31, 20Y1 Cross Training Shoes Golf Shoes Running Shoes Revenues 557,700 Variable cost of goods sold Manufacturing margin Variable selling and administrative expenses Contribution margin Fixed costs: Fixed manufacturing costs Fixed selling and administrative expenses Total fixed costs

b. Prepare a variable costing income statement for the three products. Enter a net loss as a negative number using a m Winslow Inc. Variable Costing Income Statements-Three Product Lines For the Year Ended December 31, 20Y1 Cross Training Shoes Golf Shoes Running Shoes Revenues 557,700 Variable cost of goods sold Manufacturing margin Variable selling and administrative expenses Contribution margin Fixed costs: Fixed manufacturing costs Fixed selling and administrative expenses Total fixed costs

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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