Skysong, Inc. is a company that manufactures and sells a single product. Unit sales for each of the four quarters of 2025 are projected as follows. Quarter Units First 91,200 Second 171,000 Third 627,000 Fourth 136,800 Annual total 1,026,000 Skysong incurs variable manufacturing costs of $0.40 per unit and variable nonmanufacturing costs of $0.40 per unit. Skysong will ncur fixed manufacturing costs of $820,800 and fixed nonmanufacturing costs of $1,231,200. Skysong will sell its product for $4 per unit. Ca) Determine the amount of net income Skysong will report in each of the four quarters of 2025, assuming actual sales are as projected and employing the integral approach to interim financial reporting. (Ignore income taxes.) Repeat the analysis under the discrete approach. (Round answers to O decimal places, eg. 5,125. Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) 1st Quarter 2nd Quarter 3rd Quarter Income before taxes $ $ $ $ (Integral Approach) Income before taxes $ $ $ (Discrete Approach) eTextbook and Media Save for Later Attempts: 0 of 3 used Submit Answer b1) Compute Skysong's profit margin on sales for each of the four quarters of 2025 under both the integral and discrete approaches. (Round answers to 1 decimal place, e.g. 52.5%. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Profit margin on sales 1st Quarter 2nd Quarter 3rd Quarter Integral approach % % % Discrete approach % % %
Skysong, Inc. is a company that manufactures and sells a single product. Unit sales for each of the four quarters of 2025 are projected as follows. Quarter Units First 91,200 Second 171,000 Third 627,000 Fourth 136,800 Annual total 1,026,000 Skysong incurs variable manufacturing costs of $0.40 per unit and variable nonmanufacturing costs of $0.40 per unit. Skysong will ncur fixed manufacturing costs of $820,800 and fixed nonmanufacturing costs of $1,231,200. Skysong will sell its product for $4 per unit. Ca) Determine the amount of net income Skysong will report in each of the four quarters of 2025, assuming actual sales are as projected and employing the integral approach to interim financial reporting. (Ignore income taxes.) Repeat the analysis under the discrete approach. (Round answers to O decimal places, eg. 5,125. Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) 1st Quarter 2nd Quarter 3rd Quarter Income before taxes $ $ $ $ (Integral Approach) Income before taxes $ $ $ (Discrete Approach) eTextbook and Media Save for Later Attempts: 0 of 3 used Submit Answer b1) Compute Skysong's profit margin on sales for each of the four quarters of 2025 under both the integral and discrete approaches. (Round answers to 1 decimal place, e.g. 52.5%. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Profit margin on sales 1st Quarter 2nd Quarter 3rd Quarter Integral approach % % % Discrete approach % % %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Skysong, Inc. is a company that manufactures and sells a single product. Unit sales for each of the four quarters of 2025 are projected
as follows.
Quarter
Units
First
91,200
Second
171,000
Third
627,000
Fourth
136,800
Annual total
1,026,000
Skysong incurs variable manufacturing costs of $0.40 per unit and variable nonmanufacturing costs of $0.40 per unit. Skysong will
incur fixed manufacturing costs of $820,800 and fixed nonmanufacturing costs of $1,231,200. Skysong will sell its product for $4 per
unit.
(a)
Determine the amount of net income Skysong will report in each of the four quarters of 2025, assuming actual sales are as
projected and employing the integral approach to interim financial reporting. (Ignore income taxes.) Repeat the analysis under the
discrete approach. (Round answers to O decimal places, e.g. 5,125. Enter negative amounts using either a negative sign preceding the
number e.g. -45 or parentheses e.g. (45).)
1st Quarter
Income before taxes
(Integral Approach)
Income before taxes
(Discrete Approach)
eTextbook and Media
Save for Later
(b1)
$
2nd Quarter
3rd Quarter
$
$
$
Attempts: 0 of 3 used Submit Answer
Compute Skysong's profit margin on sales for each of the four quarters of 2025 under both the integral and discrete approaches.
(Round answers to 1 decimal place, e.g. 52.5%. Enter negative amounts using either a negative sign preceding the number e.g. -45 or
parentheses e.g. (45).)
Profit margin on sales
1st Quarter
2nd Quarter
3rd Quarter
Integral approach
%
%
%
Discrete approach
%
%
%
eTextbook and Media
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