Prepare income statement using contribution approach and absorption approach.PNT has produced and sold 120,000 units. BVariable Costing Exercise2.PNT Company has been producing and selling pint containers for a number of years.The following information was gathered for 2016.34Selling price per unit$15.50Variable Cost per Unit:ManufacturingSelling & Admin$7.50$3.00Fixed CostsManufacturing$220,000$145,000Selling & AdminRequired:a. Prepare an income statement using the contribution approach for both scenariosb. Prepare an income statement using the absorption approach for both scenariosScenario 1

The income statement is prepared to compute the net profits of the business.

PNT Company has been producing and selling pint containers for a number of years. The following information was gathered for 2016. Selling price per unit $15.50 Variable Cost per Unit: Manufacturing Selling & Admin $7.50 $3.00 Fixed Costs Manufacturing $220,000 Selling & Admin $145,000 Required: 1. Prepare an income statement using the contribution approach for both scenarios . Prepare an income statement using the absorption approach for both scenarios Scenario 1

PNT Company has been producing and selling pint containers for a number of years. The following information was gathered for 2016. Selling price per unit $15.50 Variable Cost per Unit: Manufacturing Selling & Admin $7.50 $3.00 Fixed Costs Manufacturing $220,000 Selling & Admin $145,000 Required: 1. Prepare an income statement using the contribution approach for both scenarios . Prepare an income statement using the absorption approach for both scenarios Scenario 1

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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