need true answer of this General accounting question Two technology companies, Alpine Tech Solutions andSummit Software Inc., have provided their incomestatements for the most recent fiscal year. Despite havingthe same total sales, their cost structures differsignificantly.Comparative Income StatementAlpine TechSummit SoftwareFinancial MetricSolutionsInc.Sales$750,000$750,000Variable Costs$450,000$300,000Contribution$300,000$450,000MarginFixed Costs$240,000$390,000Net Income$60,000$60,000

Step 1: Define Operating LeverageOperating Leverage measures how a company's operating income…

Answered: Two technology companies, Alpine Tech…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter7: Variable Costing For Management analysis

Section: Chapter Questions

Problem 16E

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Compute the absorption costing net operating income from last year on these financial accounting question
Po.3.
The following data relate to Lobo Corporation for the year just ended: Sales revenue $750,000 Cost of goods sold: Variable portion 370,000 Fixed portion 110,000 Variable selling and administrative cost 50,000 Fixed selling and administrative cost 75,000 Which of the following statements is correct? A. Lobo’s variable-costing income statement would reveal a gross margin of $270,000. B. Lobo’s variable costing income statement would reveal a contribution margin of $330,000. C. Lobo’s absorption-costing income statement would reveal a contribution margin of $330,000. D. Lobo’s absorption costing income statement would reveal a gross margin of $330,000. E. Lobo’s absorption-costing income statement would reveal a gross margin of $145,000.
Please provide correct answer general accounting question
What is the absorption costing net operating income for last year on these general accounting question?
What would be the effect on income?
During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows: Sales (@ $63 per unit) Cost of goods sold (@ $36 per unit) Gross margin Selling and administrative expenses* Net operating income *$3 per unit variable; $255,000 fixed each year. The company's $36 unit product cost is computed as follows: Year 1 $ 1,008,000 576,000 432,000 303,000 $ 129,000 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($273,000 ÷ 21,000 units) Absorption costing unit product cost Production and cost data for the first two years of operations are: Units produced Units sold Year 1 21,000 16,000 Year 2 21,000 26,000 Year 2 $ 1,638,000 936,000 702,000 333,000 $ 369,000 $9 12 2 13 $36 Required: 1. Using variable costing, what is the unit product cost for both years? 2. What is the variable costing net operating income in Year 1 and in Year 2? 3. Reconcile the absorption costing and the variable costing net…
Calculate the gross margin of this financial accounting question
SOLVE THE GIVEN MCQS: 1) Kaaua Corporation has provided the following data for its two most recent years of operation: Selling price per unit $ 83 Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials $ 13 Direct labor $ 7 Variable manufacturing overhead $ 4 Fixed manufacturing overhead per year $ 396,000 Selling and administrative expenses: Variable selling and administrative expense per unit sold $ 4 Fixed selling and administrative expense per year $ 72,000 Year 1 Year 2 Units in beginning inventory 0 2,000 Units produced during the year 12,000 11,000 Units sold during the year 10,000 9,000 Units in ending inventory 2,000 4,000 Which of the following statements is true for Year 2? A The amount of fixed manufacturing overhead deferred in inventories is $534,000 B The amount of fixed manufacturing overhead deferred in inventories is $78,000 C The amount of fixed…
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Westerville Company reported the following results from last year's operations: please give me answer this general accounting question

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