Question 2 The 20X6 data that follow pertain to Rays, a manufacturer of swimming goggles. Rays had no beginning inventories in January 20X6." Selling price per unit Variable manufacturing expense per unit Sales commission expense per unit Fixed manufacturing overhead Fixed operating expense * of goggles produced * of goggles sold | $35.00 | $15.00 | $5.00 $2,000,000 $250,000 200,000 185,000 Required: a) Calculate the following for Rays i) The value of ending inventories using marginal costing iii) The value of ending inventories using total costing The total cost per unit b) Prepare a variable costing (contribution margin) income statement for Rays for the year ended December 31, 20X6. Rays marketing vice president believes a new sales promotion that costs $150,000 would increase sales to 200,000 goggles. Should the company go ahead with the promotion? Give your reason. c)
Question 2 The 20X6 data that follow pertain to Rays, a manufacturer of swimming goggles. Rays had no beginning inventories in January 20X6." Selling price per unit Variable manufacturing expense per unit Sales commission expense per unit Fixed manufacturing overhead Fixed operating expense * of goggles produced * of goggles sold | $35.00 | $15.00 | $5.00 $2,000,000 $250,000 200,000 185,000 Required: a) Calculate the following for Rays i) The value of ending inventories using marginal costing iii) The value of ending inventories using total costing The total cost per unit b) Prepare a variable costing (contribution margin) income statement for Rays for the year ended December 31, 20X6. Rays marketing vice president believes a new sales promotion that costs $150,000 would increase sales to 200,000 goggles. Should the company go ahead with the promotion? Give your reason. c)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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