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    How do you prepare a variable costing income statement for Rafael Corp?

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    During 2005 Rafael Corp. produced 40,000 units and sold 30,000 units for $12 per unit. Variable manufacturing costs were $4 per unit. Annual fixed manufacturing overhead was $80,000 ($2 per unit). Variable selling and administrative costs were $1 per unit sold, and fixed selling and administrative expenses were $10,000.

    Prepare a variable costing income statement.

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    Solution Summary

    The attached excel sheet in the solution includes the variable costing income statement of Rafael Corporation along with step by step calculations involved.