Variable Costing Exercise 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 Selling & Admin $220,000 $145,000 Required: a. Prepare an income statement using the contribution approach for both scenarios b. Prepare an income statement using the absorption approach for both scenarios

Variable Costing Exercise 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 Selling & Admin $220,000 $145,000 Required: a. Prepare an income statement using the contribution approach for both scenarios b. Prepare an income statement using the absorption approach for both scenarios

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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Vishal
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