Prepare the full costing income statement

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Reference no: EM132996719

Question - Financial information of a product manufactured and sold during last periods are as follows:

Unit sale price: $130

Direct Material Cost $40

Direct Labor Cost $22

Fixed Administration Expenses $50,000

Fixed Marketing Expenses $18,000

Manufacturing Overheads for the last three periods are accrued as follows:

$60,000 by 3,000 pieces of production,

$68,000 by 3,200 pieces of production,

$70,000 by 4,000 pieces of production.

For the current period it is expected to produce and sell 3,200 pieces.

Required -

1. Compute the breakeven points of the current period on quantity and amount.

2. Prepare the Full Costing Income Statement and Variable Costing Income Statement of the period.

3. A proposition of the marketing manager concerns about a 10% discount in the sale price which is expected an increase in the sales 20%, it is acceptable or not?

Reference no: EM132996719

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