Reference no: EM132992769

Marin, Inc. is a company that manufactures and sells a single product. Unit sales for each of the four quarters of 2020 are projected as follows.

Quarter                   Units
First                   73,600
Second             138,000
Third                506,000
Fourth               110,400
Annual total        828,000

Marin incurs variable manufacturing costs of $0.30 per unit and variable nonmanufacturing costs of $0.35 per unit. Marin will incur fixed manufacturing costs of $662,400 and fixed nonmanufacturing costs of $993,600. Marin will sell its product for $4 per unit.

Problem 1: Determine the amount of net income Marin will report in each of the four quarters of 2020, 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 0 decimal places, e.g. 5,125.)

Problem 2: Compute Marin's profit margin on sales for each of the four quarters of 2020 under both the integral and discrete approaches. (Round answers to 1 decimal place, e.g. 52.5%.)