Variable costing Calculations: Prepare an Income Statement
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In 2008 the company produced and sold 295,000 gallons of product
Income statement for the year ended Dec 31,2008:
Sales $4,270,000
Less cost of good sold 3,091,000
Gross Profit 1,179,000
Less selling and administrative expenses:
Selling expense $805,500
Administrative expenses 304,000 1,145,500
Net Income 33,500
Shipping cost included in selling expense = 0.60 per gallon
2008 price to stores was $14 per gallon
Fixed costs related to rent etc = 1,200,000
A. Prepare an income statement for 2008 using variable costing. What is the annual impact on profit of sales?
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Solution Summary
Excel file contains income statement using variable costing and calculation of annual impact on profit.
Solution Preview
Please see the attached file.
Variable Costing Income Statement
Sales revenue $4,270,000
...
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