Santana is considering how many workstations to produce in

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Reference no: EM13598794

Santana Rey expected sales of her line of computer workstation furniture to equal 300 workstations (at a sales price of $3,900) for 2012. The workstations' manufacturing costs include the following.

Direct materials $ 760 per unit
Direct labor $ 320 per unit
Variable overhead $ 60 per unit
Fixed overhead $ 19,200 per year

The selling expenses related to these workstations follow.

Variable selling expenses $ 45 per unit
Fixed selling expenses $ 3,800 per year

Santana is considering how many workstations to produce in 2012. She is confident that she will be able to sell any workstations in her 2012 ending inventory during 2013. However, Santana does not want to overproduce as she does not have sufficient storage space for many more workstations.

Required:
1.Compute Business Solutions' absorption costing income assuming. (Omit the "$" sign in your response.)
a. 300 Workstations ________ $
b. 320 Workstations ________ $

2.Compute Business Solutions' variable costing income assuming. (Omit the "$" sign in your response.)
a. 300 Workstations _______ $
b. 320 Workstations ________ $
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Reference no: EM13598794

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